On 8th of November 2016, government announced demonetization scheme according to which old currency notes in the denomination of 500 and 1,000 ceased to exist as a legal tender (demonetized) from the next day onwards. Government has launched new currency notes of denomination 500 and 2,000 to replace the demonetized notes.
Flow of fake currency (mostly in the form of 500 and 1,000 rupees) was increasing in the economy which was being used to fund terrorism and other evil elements. It was also known that these notes were used to hide taxable income by black money hoarders. Government has killed two birds with one stone by demonetizing these widely forged notes.
You must exchange your old redundant notes in banks and post offices. You can also get them exchanged in any of the 19 offices of RBI all over the country. You can also deposit your old notes in any branch of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
Presently, you cannot exchange more than Rs. 4,500 per week. As the supply of new currency becomes strong, the limit can be increased by RBI.
You can withdraw up to Rs. 2,500 per day from any ATM belonging to any bank without paying any fee. You can withdraw up to Rs. 24,000 per week from your bank account through cheque or withdrawal slip. So you can withdraw Rs. 24000 in a single day or in smaller
The last date to deposit or exchange old notes is December 30, 2016. However, if someone fails to do so, he will be given an opportunity to exchange his old notes at specified offices of RBI along with necessary documentation as may be prescribed by RBI.
You need to carry your valid ID proof while exchanging old currency over the counter. Carry a copy of the ID proof as well as few banks may even request you to submit a copy for their records. For depositing the old currency in your own account you will not need to submit any ID proof if your account is KYC compliant. However, keep one thing in mind that if you deposit more than Rs. 50,000 in a day then you need to submit a copy of your PAN card in the bank.
If you don’t have old demonetized currency then you do not need to worry about exchanging the same. You will not get any redundant notes from ATMs or banks if you withdraw money.
Yes, you can deposit the old bank notes to your NRO account.
You can purchase foreign exchange equivalent to ₹5000 using these specified bank notes at airport exchange counters till November 14, 2016, provided you present proof of purchasing the specified bank notes.
Government understands such concerns of citizens and therefore it has extended the validity of your old 500 and 1,000 rupee notes for certain cases at certain locations till the midnight of November 24, 2016: