Individuals who are sitting on a pile of cash, should not panic after the ban on Rs 500, Rs 1000 notes as they could be exchanged and deposited in banks.
Individuals can exchange their old high denomination currency at their near bank branch or post office. Bank customers can also deposit the same in their respective bank accounts.
Here are few things to know and carry before depositing old currency:
1) If your account is KYC compliance, you can deposit any amount in your bank account. Accounts where KYC is not done, the maximum they can deposit will be restricted to Rs 50,000.
2) Individuals can even deposit the notes in the bank account in any branch by carrying valid ID proofs.
3) Bank customers are allowed to deposit notes in third party account if a person is carrying authorisation letter along with valid ID proofs. This means that one can deposit on behalf of their friend, relative, parents by carrying authorisation letter from them along with their ID proof.
4) Cash withdrawal from bank branch is restricted to Rs 10,000 with an overall limit of Rs 20,000 in a week until November 24, 2016.
5) Each person can exchange cash up to Rs 4,000 and anything above that will be credited to their bank account.
6) At ATMs, bank customers can withdraw up to a maximum of Rs 2,000 per card per day up toNovember, 2016. The limit will be increased to Rs 4,000 from 19th November 2016 onwards.
Below documents will act as ID proofs and should be carried when exchanging the notes.
1. Aadhaar Card
2. Driving License
3. Voter ID
5. NREGA Card
6. PAN Card
7. Or identity issued by Government Department, Public sector units to its staff.
What is the procedure to exchange old notes?
Individuals who wish to exchange old notes should carry valid ID proofs mentioned above. Collect a request slip from the bank and fill the same.
- Details to mention in request slip
- Name of the customer
- Account Number
- Name of Tenderer (One who is exchanging notes)
- Tick the ID proof which you are carrying
- Enter the identification number which is on your ID proof
- Mention the details of denomination
- Signature of Tenderer
Income Tax scrutiny
Revenue Secretary Dr. Hasmukh Adhia said that the department will be getting reports of all cash deposited during the period of 10th November to 30thDecember, 2016 above a threshold of Rs 2.5 lakhs in every account.
However, deposits within the tax limit can be made within the banking system without any questions being asked.