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(Updated as on December 27, 2016)
1. Why is this Scheme introduced?
The
incidence of fake Indian currency notes in higher denomination has
increased. For ordinary persons, the fake notes look similar to
genuine notes, even though no security feature has been copied. The
fake notes are used for antinational and illegal activities. High
denomination notes have been misused by terrorists and for hoarding
black money. India remains a cash based economy hence the
circulation of Fake Indian Currency Notes continues to be a menace. In
order to contain the rising incidence of fake notes and black money,
the scheme to withdraw has been introduced.
2. What is this Scheme?
The
legal tender character of the existing bank notes in denominations
of Rs 500 and Rs 1000 issued by the Reserve bank of India till
November 8, 2016 (hereinafter referred to as Specified Bank Notes)
stands withdrawn. In consequence thereof these Bank Notes cannot be
used for transacting business and/or store of value for future
usage. The Specified Bank Notes can be exchanged for value at any of the
19 offices of the Reserve Bank of India and deposited at any of the
bank branches of commercial banks/ Regional Rural Banks/
Co-operative banks (only Urban Co-operative Banks and State
Co-operative Banks) or at any Head Post Office or Sub-Post Office.
District
Central Cooperative Banks (DCCBs) can allow their existing
customers to withdraw money from their accounts up to Rs 24,000 per
week. No exchange facility against the specified bank notes (Rs 500
and Rs 1000) or deposit of such notes should be entertained by
DCCB’s. The Reserve Bank has accordingly advised all banks to permit
withdrawal of cash by DCCBs from their accounts based on need.
3. Does the Scheme apply to pre 2005 banknotes of Rs 500 and Rs 1000?
Yes,
specified banknotes (SBN) include pre 2005 banknotes in the
denominations of Rs 500 and Rs 1000. Banks should accept deposits of
pre-2005 bank notes in the denominations of Rs 500 and Rs 1000
under the scheme. However, these notes can be exchanged at RBI
Offices only.
4. How much value will I get?
You will get value for the entire volume of notes tendered at the bank branches / RBI offices.
5. Can I get all in cash?
The
Scheme does not provide for it, given its objectives. You can use
balances in bank accounts to pay for other requirements by cheque or
through electronic means of payments such as Internet banking,
mobile wallets, IMPS, credit/debit cards etc.
6. Can I get cash in exchange for specified banknotes over the bank counter?
No.
Over the counter exchange (in cash) of SBNs is not permitted from
November 25, 2016. Members of public who approach the banks for over
the counter exchange of SBN are encouraged to deposit SBNs into
their bank accounts. Banks have been advised to facilitate opening
of new accounts for unbanked people.
7. What if I don’t have any Bank Account?
You
can always open a bank account by approaching a bank branch with
necessary documents required for fulfilling the KYC requirements.
8. What if, if I have only JDY account?
A
JDY account holder can avail the deposit facility subject to the
caps and other laid down limits in accord with norms and procedures.
With
a view to protect the innocent farmers and rural account holders of
PMJDY from activities of money launders and legal consequences
under the Benami Property Transaction & Money Laundering laws,
it has been decided to place certain limits, as a matter of
precaution, on the operations in the PMJDY accounts funded through
deposits of Specified Bank Notes (SBNs) after November 09, 2016. As a
temporary measure, the banks have been advised that:
(1)
Fully KYC complaint account holders may be allowed to withdraw Rs
10,000/- from their account, in a month. The branch managers may
allow further withdrawals beyond Rs 10,000 within the current
applicable limits only after ascertaining the genuineness of such
withdrawals and duly documenting the same on bank’s record.
(2)
Limited or Non KYC compliant account holders may be allowed to
withdraw Rs 5,000 per month from the amount deposited through SBNs
after November 09, 2016 within the overall ceiling of Rs 10,000.
9. Where can I go to exchange the notes?
The exchange facility has been stopped at bank branches with effect from November 25, 2016.
10. Should I go to bank personally for deposit or can I send the notes through my representative?
Personal
visit to the branch is preferable. In case it is not possible for
you to visit the branch you may send your representative with an
express mandate i.e. a written authorisation. The representative
should produce authority letter and his / her valid identity proof
while tendering the notes.
In
case you want to go to a branch of any other bank where you are not
maintaining an account, you will have to furnish valid identity
proof and bank account details required for electronic fund transfer
to your account.
11. Can I withdraw from ATM?
The
ATMs are progressively getting recalibrated. As and when they are
recalibrated, the cash limit of such ATMs will stand enhanced to Rs
2500/- per day. This will enable dispensing of lower denomination
currency notes for about Rs 500/- per withdrawal. Other ATMs which
are yet to be recalibrated, will continue to dispense Rs 2000/- till
they are recalibrated.
Banks
have also been advised to increase the Business Correspondents’
limit of dispensing cash to Rs 2500/- for withdrawal from bank
accounts.
12. What will be the levied ATM charges?
It
has been decided that banks shall waive levy of ATM charges for all
transactions (inclusive of both financial and non-financial
transactions) by savings bank customers done at their own banks’
ATMs as well as at other banks’ ATMs, irrespective of the number of
transactions during the month. This waiver is applicable on transactions
done at ATMs from November 10, 2016 till December 30, 2016, subject
to review.
13. Does the limit of Rs 24000 withdrawal apply to withdrawals from bank account of one bank from another bank?
These
limits are not applicable to cash withdrawal from a bank account by
one bank from another bank, Post Office, Money changers operating
at International airports and operators of White Label ATMs. The
branches maintaining Currency Chests have been advised to
accommodate the requests from other branches in their vicinity –
linked or otherwise – for supply of cash.
14. Can I withdraw cash against cheque?
Yes,
you can withdraw cash against withdrawal slip or cheque subject to a
weekly limit of Rs 24000/- (including withdrawals from ATMs and
over the counter) from the bank accounts.
Business
entities having Current Accounts which are operational for last
three months or more will be allowed to draw Rs 50,000/-per week.
This can be done in a single transaction or multiple transactions.
This facility has been extended to Overdraft and Cash Credit
accounts and traders registered with the Agricultural Produce Market
Committee (APMC) markets or mandis. Accordingly, holders of current
/ overdraft / cash credit accounts, which are operational for the
last three months or more, may withdraw up to Rs 50000 in cash, in a
week. Such withdrawals may be disbursed predominantly in Rs 2000
denomination bank notes. This enhanced limit for weekly withdrawal is
not applicable for personal overdraft accounts. Farmers are allowed
to draw up to Rs 25000/- per week in cash from their loan (including
Kisan Credit Card limit) or deposit accounts subject to their
accounts being compliant with the extant KYC norms.
15. Can I withdraw a higher amount for the purpose of my ward’s wedding?
With
a view to enable members of the public to perform and celebrate
weddings of their wards it has been decided to allow a cash
withdrawal of maximum Rs 250000/- from their bank deposit accounts
till December 30, 2016 out of the balances at credit in the account
as at close of business on November 08, 2016 to meet wedding related
expenses. This is subject to the following conditions:
i. Withdrawals are permitted only from fully KYC compliant accounts.
ii. The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.
iii.
Withdrawals can be made by either of the parents or the person
getting married. (Only one of them will be permitted to withdraw).
iv.
Since the amount proposed to be withdrawn is meant to be used for
cash disbursements, it has to be established that the persons for
whom the payment is proposed to be made do not have a bank account.
v. The application for withdrawal shall be accompanied by following documents:
- An application as per the format
- Evidence
of the wedding, including the invitation card, copies of
receipts for advance payments already made, such as Marriage
hall booking, advance payments to caterers, etc.
- A
detailed list of persons to whom the cash withdrawn is
proposed to be paid, together with a declaration from such
persons that they do not have a bank account, where the amount proposed to be paid is Rs 10,000/- or more. The list should indicate the purpose for which the proposed payments are being made.
Banks
may keep a proper record of the evidence and produce them for
verification by the authorities in case of need. The scheme will be
reviewed based on authenticity/ bona fide use thereof. Yet, banks
should encourage families to incur wedding expenses through non-cash
means viz. cheques /drafts, credit/debit cards, prepaid cards,
mobile transfers, internet banking channels, NEFT/RTGS, etc.
Therefore, members of the public should be advised, while granting cash
withdrawals, to use cash to meet expenses which have to be met only
through cash mode.
16. What is being done for the farmers?
Farmers
are allowed to draw up to Rs 25000/- per week in cash from their
loan (including Kisan Credit Card limit) or deposit accounts subject
to their accounts being compliant with the extant KYC norms.
Specified banknotes in the denomination can be used for making
payments towards purchase of seeds from the Centres, units or
outlets belonging to the Central or State Governments, Public Sector
Undertakings, National or State Seeds Corporations, Central or State
Agricultural Universities and the Indian Council of Agricultural
Research, on production of proof of identity.
Towards
ensuring unhindered farming operations during the Rabi crop season,
NABARD would be utilizing its own cash credit limits up to about Rs
23,000 crore to enable the DCCBs to disburse the required crop
loans to PACS and farmers. Banks with currency chests have been
advised to ensure adequate cash supply to the DCCBs and RRBs.
Adequate cash supply should also be ensured for rural branches of all
commercial (including RRBs). Bank branches located in APMCs may also
be given adequate cash to facilitate smooth procurement.
17. Can I deposit Specified Bank Notes through ATMs, Cash Deposit Machine, cash Recycler and bank branches multiple times?
Yes,
Specified Bank Notes can be deposited in Cash Deposits machines /
Cash Recyclers or at bank branches more than once till December 30,
2016. At bank branches, customers should use separate pay-in-slips
for depositing specified bank notes and other legal tender bank
notes.(If a depositor has a mixed bunch of SBN and legal tender
notes, he has to segregate them and submit two separate Pay-in
slips).
18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?
You
can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other
electronic/ non-cash mode of payment. In order to meet the
transactional needs of the public through digital means, additional
measures have been introduce by way of special dispensation for
small merchants and enhancement in limits for semi-closed Prepaid
Payment Instruments (PPIs).
PPIs
issuers can issue PPIs to such merchants. While balance in such
PPIs cannot exceed Rs 20,000/- at any point of time, the merchants
can transfer funds from such PPIs to their own linked bank accounts
up to Rs 50,000/- per month, without any limit per transaction.
Merchants only need to provide a self-declaration in respect of
their status and details of their bank account.
The
limit of semi-closed PPIs issued with minimum details has been
enhanced to Rs 20,000/- from the existing Rs 10,000/-. The total
value of reloads during any given month has also been enhanced to Rs
20,000/-.
Extant
instructions for other categories of PPIs remain unchanged. Full
KYC PPIs with balance upto ₹1,00,000/- can continue to be made
available by authorised PPI issuers. The above measures will be
effective from November 21, 2016 till December 30, 2016, subject to
review.
Relaxation
in Additional Factor of Authentication (AFA) for payments upto Rs
2000/- for card network provided authentication solutions has been
permitted for the Card Not Present (CNP) transactions. For details
please refer RBI DPSS circular dated December 6, 2016.
19. I am right now not in India, what should I do?
If
you have Specified banknotes in India, you may authorise in writing
enabling another person in India to deposit the notes into your
bank account. The person so authorised has to come to the bank
branch with the Specified banknotes, the authority letter given by
you and a valid identity proof (Valid Identity proof is any of the
following: Aadhaar Card, Driving License, Voter ID Card, Pass Port,
NREGA Card, PAN Card, Identity Card Issued by Government Department,
Public Sector Unit to its Staff)
20. I am an NRI and hold NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the Specified banknotes to your NRO account.
21.
I am a foreign tourist, how much Indian currency can I get after
the announcement of withdrawal of legal tender status for specified
banknotes?
Foreign
citizens will be permitted to exchange foreign currency up to Rs
5000 per week. Necessary entry to this effect will be made in their
passports.
22. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
Exemptions for the use of specified banknotes have been discontinued with effect from December 16, 2016
23. Can I deposit the Specified banknotes to my account?
Deposits
of Specified bank Notes into all types of deposit/loan accounts of
Public Sector Banks/ Private Sector Banks / Foreign Banks/Regional
Rural Banks / Urban Cooperative Banks/ State Cooperative Banks is
allowed subject to CTR/STR reporting. Certain restrictions have been
imposed on deposits of SBNs into non KYC compliant bank accounts as
indicated below:
Tenders
of SBNs in excess of Rs 5000 into a non KYC compliant bank account
will be received for credit only once during the remaining period
till December 30, 2016. The credit in such cases shall be afforded
only after questioning tenderer, on record, in the presence of at
least two officials of the bank, as to why this could not be
deposited earlier and receiving a satisfactory explanation. The
explanation will be kept on record to facilitate an audit trail at a
later stage.
Even
when tenders smaller than Rs 5000 are made in a non KYC compliant
bank account and such tenders taken together on cumulative basis
exceed Rs 5000 they may be subject to the procedure to be followed
in case of tenders above Rs 5000, with no more tenders being allowed
thereafter until December 30, 2016.
The
equivalent value of specified bank notes tendered will 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.
The
equivalent value of specified bank notes tendered may be credited
to a third party account, provided specific authorisation therefor
accorded by the third party is presented to the bank, following
standard banking procedure and on production of valid proof of
identity of the person actually tendering, as indicated in Annex-5 of our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016
Anybody
depositing more than Rs 50,000/- in cash in their bank account has
to submit a copy of the PAN card in case the bank account is not
seeded with PAN.
24. Can I deposit SBN to Small Savings Scheme?
Government
of India has decided that subscribers of Small Savings Schemes may
not be allowed to deposit SBNs in Small Savings Schemes. Banks have
been advised not to accept SBNs for deposits in Small Saving Schemes
with immediate effect. However deposits into Post Office Savings
account are permitted
25. What is proof of identity?
Valid
Identity proof is any of the following: Aadhaar Card, Driving
License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity
Card Issued by Government Department, Public Sector Unit to its
Staff.
26. Where can I get more information on this scheme?
27. What steps have been taken for queue management?
Banks
have been advised to make arrangements for separate queues for
Senior citizens and Divyang (disabled) persons. Similarly, separate
queues should also be arranged for those who come to exchange SBN
for cash and those who come to deposit into bank accounts.
The
last date for submission of the annual life certificate for the
government pensioners which is to be submitted in November every
year has been extended upto January 15, 2017 to facilitate.
The
Reserve Bank assures members of the public that enough cash in
small denominations is also available at the Reserve Bank and banks.
The Reserve Bank urges that public need not be anxious; need not
come over to banks repeatedly to draw and hoard; Cash is available
when they need it.
Also see:
28. If I have a problem, whom should I approach?
You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944
29. Can payments towards tax, penalty, surcharge and deposit under PMGKY be made in SBNs?
The
Central Government has decided that up to 30.12.2016, the payment
towards tax, surcharge, penalty and deposit under the Pradhan Mantri
Garib KalyanYojana (PMGKY), can be made in Old Bank Notes of Rs 500
and Rs 1,000 denomination issued by the RBI. The Taxation and
Investment Regime for Pradhan Mantri Garib KalyanYojana (PMGKY),
2016 has commenced on 17th December, 2016 and is open for
declarations upto 31st March, 2017. The payment of tax, surcharge and
penalty under the Scheme is to be made through challan ITNS- 287 and
the deposits are to be made in the Pradhan Mantri Garib Kalyan
Deposit Scheme, 2016. The notifications relating to PMGKY are
available on the website www.incometaxindia.gov.in
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