Government of India and Reserve Bank of India (RBI) has banned the existing Rs 500 and Rs 1000 notes from the circulation and transaction with immediate effect. Starting 09th Nov transaction in these two currencies are not valid as the legal tender of these two denomination of notes are stands invalid. Starting November 09th currency of Rs 500 and Rs 1000 will not be having any value.
Government has surprised with their decision not only the common man but also the RBI, Banks and economists.It’s like surgical strike by government to unearth black money, corruption for while and fake currency rackets.Meanwhile government has given the relaxed time from cash menace i.e Time frame to exchange the notes of above denomination with Banking or Post offices within limited time frame.
Rules for Exchanging Rs 500 and Rs 1000 currency notes
Although the government has banned the Rs 500 and Rs 1000 currency notes but provided certain relation in exchanging the notes with certain pre condition. The various ways through which the individual may transact banned notes are :
- Exchange Rs 500 and Rs 1000 notes with Banks/post offices only. Exchanging notes in normal transaction with other than banks/post office are illegal as the Tender value of notes as per RBI is none.
- This is to remind you that there is maximum cap on exchanging notes with banks i.e. Rs 20,000 per week.
- From November 10-24, old notes worth Rs 4,000 can be exchanged per day. Post November 24, this limit will be increased. The exchange can be done at any bank branch or post office upon showing your ID proof such as the Aadhaar card, Passport, Voter card, Ration card etc.
- You may exchange your notes till 30th December 2016 only. Afterwards till 31 March 2017 on special request with details of earning and ID proof.
- You may use these banned notes for medical, Hospital, Railways station, Airport till 11th Nov only.
- New currencies of Rs 500 and Rs 2000 notes will be released for circulation.
- RBI will release new Rs 500 and Rs 2000 currency soon.
IMPORTANT To Remember while Depositing the Rs 500 and Rs 1000 notes at Bank counter
- Later stage authorities may keep track of all the notes deposited at bank counter. Keep a list of the serial numbers of the notes submitted /exchanged at banks as accepting bank/post offices will keep track of these notes.
- Income tax department will be taking a look at who is submitting how much so exchange. So, only deposit the amount which you may explain to the tax department later.
This is the boldest move by the government to curb the black money and fake money from the economy. This will help strengthening the Indian currency and improvement in economy. A great start to cashless economy.
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