What to Do With 500 and 1000 Rupees Notes? | H&R Block
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What to Do With 500 and 1000 Rupees Notes?

500 and 1000 Notes

Yesterday, government took the nation by storm when it announced demonetization of 500 and 1000 rupees notes with effect from midnight. This has come as a major milestone for the reigning government as it has killed two birds with one stone with this masterstroke. Government has attempted to clip the spreading wings of fake currency which were becoming a menace for the nation. Government will be able to tackle this issue by replacing all the existing currency notes of denomination 500 and 1,000. The secondary target here is the vile network black money in the country. Both are a plague and both have been trumped with this step.

In place of the old 500 and 1,000 rupees notes, new new 500 and 2,000 rupee notes will be issued by Reserve Bank of India. However, no new 1,000 rupee notes will be issued.

Read further if you are clueless and stunned after government’s announcement. Here’s what you need to do with your 500 and 1000 rupee notes:

a) You can deposit them at the bank or post office from November 10 to December 30.

b) You can also exchange them from a bank or post office till 30th of November. The limit for exchange is Rs. 4000. The limit has been revised to Rs. 4,500.

c) Don’t forget to take your Aadhaar card and PAN card when you go to exchange notes.

d) After December 30, these can be deposited at the Reserve Bank with a declaration.

e) Tourists can also change the notes at airports to avoid unnecessary hassles.

 

There are certain places where your 500 and 1000 rupee notes will still be accepted till November 11 till November 24 as per the revision:

a) Petrol Pumps and government hospitals

b) Railway, airline, government bus ticket booking counters

c) Consumer co-operative stores run by state or central government

d) Milk booths authorized by state governments

e) Crematoriums and burial grounds

Although it may take a while for the banks to recalibrate their ATMs but once the ATMs are functional, you can withdraw from ATMs up to a maximum of Rs.2,000 per card per day up to 18th November, 2016. The limit will be raised to Rs. 4000 per day per card from 19th November 2016 onwards. 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 i.e. up to 24th November 2016.

Government announced revised limits on Sunday. You can now withdraw up to Rs. 2,500 per card per day from the ATMs and exchange up to Rs. 4,500 per day over the counter. The upper limit for withdrawal from banks has been removed and weekly withdrawal limit has been raised to Rs. 24,000. The new limits will be applicable till further revision.

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