Taking the nation by surprise, Prime Minister Narendra Modi tonight announced demonetisation of Rs 1000 and Rs 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.
In his first televised address to the nation, Modi said people holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.
Main points from PM Modi's speech:
1. Currency notes of Rs 500 and Rs 1000 denominations will not be legal beginning November 9
2. New notes of Rs 500 and Rs 2,000 would be released and circulated from November 10
3. ATMs will not work on November 9, and at some places on November 10 as well
4. People can deposit notes of Rs 1000 and Rs 500 in their banks from November 10 till December 30, 2016
5. Those unable to deposit Rs 1000, Rs 500 notes by December 30 for some reason, can change them till March 31, 2017 by furnishing ID proof
6. Currency notes of Rs 1000 and Rs 500 will be just paper with no value
7. Banks will remain closed on 9th November
8. All banks and post offices will remain shut tomorrow
9. Cashless fund transfer won't be affected by this
10. Respite for people for the initial 72 hours, Govt hospitals will accept old Rs 500 and 1000 notes till 11 November midnight
11. Some medical facilities will be exempted from this for the time being
12. Rs 20,000 weekly cap on exchange of Rs 500 & Rs 1,000 notes
What the FAQ just happened! All your questions about Rs 500-1000 notes answered
Here are all the questions that you are going to frequently ask, answered.
1. Why this now?
There has been a rise in the incidence of fake Indian currency notes in higher denomination. More often that not, the common man fail to distinguish between original and fake notes. Fake notes are used for anti-national, illegal activities, misused by terrorists and for hoarding black money. As India remains a cash based economy and there is a rise in the circulation of fake Indian currency notes, the withdrawal has been introduced to contain the fake note circulation and to hurt those who keep unaccounted money.
2. What exactly is this?
The legal tender character of the notes in denominations of 500 and 1000 stands withdrawn. In simple terms, all the 500 and 1000 rupee notes will be just paper, these cannot be used for transacting business and/or store of value for future usage.
3. How much is my Rs 500/1000 note worth now?
Your 500/1000 notes are worth its value till December 30, provided you deposit it in your bank account.
4. Can I get all in cash?
No. You will get up to Rs 4,000, per person, in cash and if you need more, you can get it credited to your bank account.
5. Why can I not get the entire amount in cash when I have surrendered everything in cash?
The scheme does not provide for it, given its objectives.
6. Rs 4,000 cash is insufficient for my need. What to do?
You can use mobile wallets, online payment methods, IMPS, debit/credit cards, and you can also pay by cheque.
7. What if I don't have any bank account?
Don't worry. Pick the bank of your choice, and get a bank account opened. Carry the necessary documents required for fulfilling the KYC requirements.
8. What if I have only a Jan Dhan account?
You can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
9. Where can I go to exchange the notes?
You can exchange the notes at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
10. Will I have to go to my bank branch itself?
For exchange up to Rs 4,000 in cash you may go to any bank branch but do carry a valid identity proof.
For exchange over Rs 4,000, which will be accorded through credit to bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
11. Can I go to any branch of my bank?
Yes, you can go to any branch of your bank.
12. Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. But in this case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds Rs 4,000.
13. I have no bank account but my relative / friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder, that is your relative / friend, gives you permission in writing. While exchanging, you need to show this proof and your valid identity card at the bank.
14. Should I go to bank personally or can I send the notes through my representative?
It is better if you can visit the branch. In case you are sending a representative, do give him an express mandate, that is, a written authorisation. While tendering the notes, this representative will have to produce the authorisation letter and a valid identity proof.
15. Can I withdraw from ATMs?
ATMs and banks will remain closed on November 9. It may take a while for the banks to recalibrate their ATMs, and once it's done, you can withdraw up to a maximum of Rs 2,000 per card per day till November 18. The limit will be raised to Rs 4,000 per day per card from the November 19 onwards.
16. Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) for the first fortnight, that is up to November 24, 2016.
17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, notes can be deposited in Cash Deposits machines / Cash Recyclers but not on November 9.
18. Can I make use of electronic (NEFT / RTGS / IMPS / Internet Banking / Mobile banking) mode?
Yes, these facilities will come handy. You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic, non-cash mode of payment.
19. How much time do I have to exchange the notes?
The scheme closes on December 30, 2016. The banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till this date.
If you fail to exchange these notes on or before December 30, an opportunity will be given at specified RBI offices. You will have to provide necessary documentation as specified by the Reserve Bank of India.
20. I am right now not in India, what should I do?
You can authorise someone who is in India by giving an authorisation letter and get the notes deposited into your bank account. This person will have to go to the bank on your behalf, with a valid identity card and your permission letter.
21. I am an NRI and hold an NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the scrapped banknotes to your NRO account.
22. I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to Rs 5,000 using these notes at the airport exchange counters within 72 hours after the notification, but you will have to present proof of purchasing these notes.
23. If I have an emergency (hospitalisation, travel, life saving medicines) and is in need of cash,then what should I do?
You can use Rs 500, 1000 notes for paying off your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.
24. What is proof of identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving Licence, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.
25. Where can I get more information on this scheme?
Further information is available on www.rbi.org.in and GoI website.
26. If I have a problem, whom should I approach?
You may approach the control room of RBI by email. You can mail to firstname.lastname@example.org call 022 22602201 / 022 22602944.