Prime Minister Narendra Modi’s surprise announcement about the discontinuation of Rs 500 and Rs 1,000 notes from Tuesday midnight has sent a wave of panic across the country, with thousands taking to shops or ATMs in a bid to exchange their notes.
However, citizens should note that there is ample time to exchange their soon to be defunct notes.
Before we get to how one can start exchanging their old notes, here’s a gist of what was announced:
# From now on, Rs. 500 and Rs. 1000 notes will not be legal tender any more.
# On November 9 and in some places on November 10, ATMs will not work.
# There will be respite for people for the initial 72 hours as government hospitals will accept old Rs. 500 and 1000 notes till 11 November midnight.
# Petrol pumps, retail outlets will have to keep every single entry of cash transaction with 500 and 1000 notes till November 11.
# Crematoriums and cemeteries will be allowed to transact 500 and 1000 notes till November 11.
# Railway stations, bus stands and airports will also be allowed to transact 500 and 1000 notes till November 11.
# Medicines can be purchased with Rs 500, Rs 1000 notes for the next 72 hours.
# On November 9, all banks will remain closed for public work.
# Notes of Rs 2000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value.
# For next few days, ATM withdrawals will be restricted to Rs 2,000 owing to an expected paucity of notes. ID Cards needed to return notes.
How to exchange old notes:
# Citizens will have 50 days to deposit notes of Rs 500 & Rs 1000 in any Bank or Post office.
# During the 50 day period, i.e. from 10 Nov to 30 Dec, there will be no limit on the deposits.
# However, a withdrawal limit of Rs 10,000 per day and Rs 20,000 per week will be applicable.
# The withdrawal limit will be gradually increased in a few days.
# Those unable to deposit notes by Dec 30 for some reason, can change them till March 31, 2017 by furnishing ID proof.
# Citizens will have 50 days to exchange notes of Rs 500 & Rs 1000 in any Bank, Head Post office or Sub-Post office after furnishing ID card.
# A limit of Rs 4,000 is applicable on exchanging notes till Nov 24.
# The limit on exchange of notes will be increased post Nov 24.
# There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.
# Notes of Rs 100, 50, 10 and coins of all denominations will remain legal tender and will not be affected.
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