Government of India on Tuesday decided to cancel the legal tender character of the high denomination bank notes of Rs 500 and Rs 1000 denominations issued by RBI till now. This will take effect from the expiry of the 8th November, 2016.
Here are few things to know:
Old high denomination bank notes can be deposited by individuals into their bank accounts or exchanged the same in bank branches or RBI issue offices till 30th December, 2016.
Individuals can exchange only Rs4000 per day at any bank branch, post office or RBI issue office along with proof of identity.
There will not be any limit on the quantity or value of old high denomination bank notes to be credited to the account of the tenderer maintained with the bank.
In accounts where compliance with extant Know Your Customer (KYC) norms is not complete, a maximum value of Rs 50,000/- of old notes can be deposited.
Cash withdrawal from a bank account, over the counter is restricted to Rs 10,000/- subject to an overall limit of Rs 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.
However, there will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms.