All You Need to Know About Discontinuation of Rs 500 and 1000 Currency Notes

In a bold move, Indian government has decided to discontinue currency notes of Rs 500 and Rs 1000 denomination on 8th Nov, 2016.  Here are some key points to

1. Old High Denomination Bank Notes may be deposited by individuals/persons
   into their bank accounts and/or exchanged in bank branches or Issue Offices
   of RBI till the close of business hours on 30th December, 2016.
2. Old High Denomination Bank Notes of aggregate value of Rs.4,000/- only or
   below held by a person can be exchanged by him/her at any bank branch or
   Issue Office of Reserve Bank of India for any denomination of bank notes
   having legal tender character, provided a Requisition Slip as per format to be
   specified by RBI is presented with proof of identity and along with the Old
   High Denomination Bank Notes. Similar facilities will also be made available
   in Post Offices.
3. The limit of Rs.4,000/- for exchanging Old High Denomination Bank Notes at
   bank branches or at issue offices of Reserve Bank of India will be reviewed
   after 15 days and appropriate notification issued, as may be necessary.
4. 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, where the Old High Denomination Bank Notes are
   tendered. However, in accounts where compliance with extant Know Your
   Customer (KYC) norms is not complete, a maximum value of Rs.50,000/- of
   Old High Denomination Bank Notes can be deposited.
5. The equivalent value of the Old High Denomination Bank Notes tendered can
   be credited to an account maintained by the tenderer at any bank in
   accordance with standard banking procedure and on production of valid proof
   of Identity.
6. The equivalent value of the Old High Denomination Bank Notes tendered can
   be credited to a third party account, provided specific authorisation therefor
   accorded by the said account holder is presented to the bank, following
   standard banking procedure and on production of valid proof of Identity of the
   person actually tendering.
7. Cash withdrawal from a bank account, over the counter will be 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.
8. 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.
9. Withdrawal from ATMs would be restricted to Rs.2,000 per day per card up
   to November 18, 2016. The limit will be raised to Rs.4,000 per day per card
   from November 19, 2016 onwards.
10. For those who are unable to exchange their Old High Denomination Bank
    Notes or deposit the same in their bank accounts on or before December 30,
    2016, an opportunity will be given to them to do so at specified offices of the
    RBI on later dates along with necessary documentation as may be specified
    by the Reserve Bank of India.
11. Instruction is also being issued for closure of banks and Government
    Treasuries, on 9th November, 2016.
12. In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other
    machine used for receipt and payment of cash will remain shut on 9th and 10th
    November, 2016.
13. The bank branches and Government Treasuries will function from 10th
    November, 2016.
14. To avoid inconvenience to the public for the first 72 Hours, Old High
    Denomination Bank Notes will continue to be accepted at Government
    Hospitals and pharmacies in these hospitals/Railway ticketing counters/ticket
    counters of Government/Public Sector Undertaking buses and airline ticketing
    counters at airports; for purchases at consumer co-operative societies, at milk
    booths, at crematoria/burial grounds, at petrol/diesel/gas stations of Public
    Sector Oil Marketing Companies and for arriving and departing passengers at
    international airports and for foreign tourists to exchange foreign currency at
    airports up to a specified amount.

New currency notes of Rs 500 and Rs 2000 be launched on 10th Nov, 2016.