Details on How to Exchange or Deposit old Rs 500 and Rs 1000 notes

On Nov 8, 2016 night, prime minister Modi sprung a surprise by discontinuing all existing Rs 500 and Rs 1000 notes effective Nov 8 night. It is a great move against black money by the govt. But for general public point of view, it will create lot of difficulties in doing day-to-day transactions.

Here is a guide on how to exchange or deposit old Rs 500 and Rs 1000 notes:

(Please note that banks will be closed for these transactions on Nov 9 to prepare for this massive exercise)

Time Line

  • 8th November, 8:00 P.M. - Govt. announced that existing notes of 500 and 1000 will not be usable anymore.

  • 9th November - Banks and ATMs will not open for public.

  • 10th November - Banks and ATMs will be open for public.

  • 10th November - 31st December - Old notes can be exchanged or deposited from Nov 10 till Dec 31, 2016 at banks, post office etc. So there is a 50 day timeframe to get it done. No need to panic or hurry as initially there is bound to be long queues in front of every bank / post office.

  • 31st December, 2016 - 31st March, 2017 - If because of some reason, one is not able to exchange or deposit Rs 500 or 1000 notes till Dec 31, 2016, he/she can deposit the money till Mar 31, 2017 at RBI offices by making a declaration.

Deposit in your Bank or Post Office Account

  • Starting Nov 10, you can deposit your old Rs 500 and Rs 1000 notes in your bank or post office account.
  • There is no limit on how much cash you can deposit into your account (Though if you deposit black money, then eventually you will have to face the income tax scrutiny)
  • One can deposit in another person account by having a written authorisation by them and your ID proof (this is to ensure that one can deposit even if one is ill)

Please note that even though there is no limit on deposit, there is a limit on withdrawl from ATMs and Banks. This is due to low availability of new notes.

  • ATMs - Rs 2000 per day per card till Nov 18 and Rs 4000 after that (to be increased later).
  • Banks / Post offices - Rs 10000 per day and Rs 20000 per week till Nov 24 (to be increased later).

Exchange notes over the Counter

Apart from depositing money in your bank or post office account, one can also exchange old currency notes in banks, post office or special counters across India.

  • To exchange notes, you will need to show a govt-approved id card - e.g., PAN, ration card, voter id card etc.
  • From Nov 10 till Nov 24, there is a limit of Rs 4000 per day which will be increased later.
Category: finance