DETAILS ABOUT THE WITHDRAWAL OF RS.500/ AND RS.1,000/- CURRENCY NOTES AND SUBSEQUENT ISSUE OF RS.2,000/- CURRENCY NOTES. RESERVE BANK OF INDIA - NOTIFICATION - FREQUENTLY ASKED QUESTIONS - DETAILS
RESERVE BANK OF INDIA
NOTIFICATION
BI/2016-17/112
DCM (Plg) No.1226/10.27.00/2016-17
November 08, 2016
The Chairman / Managing Director/ Chief
Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural Banks
/ Urban Cooperative Banks/ State Cooperative Banks
Dear Sir
Withdrawal of Legal Tender Character of
existing ₹ 500/- and ₹ 1000/- Bank Notes
In terms of Gazette Notification No 2652
dated November 08, 2016 issued by Government of India, ₹ 500 and ₹ 1000
denominations of Bank Notes of the existing series issued by Reserve Bank of
India (hereinafter referred to as Specified Bank Notes) shall cease to be legal
tender with effect from 9th November, 2016, to the extent specified in the
Notification. A new series of Bank Notes called Mahatma Gandhi (New) Series
having different size and design, highlighting the cultural heritage and
scientific achievements of the country, will be issued. Bank branches will be
the primary agencies through which the members of public and other entities
will be exchanging the Specified Bank Notes for Bank Notes in other valid
denominations or depositing the Specified Bank Notes for crediting to their
accounts, upto and including the December 30, 2016. Therefore, banks have to
accord highest priority to this work.
In order to enable the members of public and
other entities to exchange their existing ₹ 500/- and ₹ 1000/- notes, the
following arrangements have to be made by the banks.
2. Action to be taken on November 09, 2016
i) November 09, 2016 (Wednesday) shall be a
non-business working day for all banks. However, branches will function on that
day to carry out preparations for implementing the scheme as per this circular.
ii) The Specified Bank Notes stocked in ATMs,
Cash Deposit Machines, Cash Recyclers, Coin Vending Machines, any other cash dispensing/receiving
machine, CIT Companies and Business Correspondents attached to the branch will
have to be called back forthwith. The sponsor banks of White Label ATMs will be
responsible for recalling the Specified Bank Notes from the White Label ATMs
sponsored by them.
iii) Banks should take steps to stop issuing
Specified Bank Notes through their branches, business correspondents from
November 9, 2016.
iv) All ATMs, Cash Deposit Machines, Cash
Recyclers and any other machine used for receipt and payment of cash shall be
shut on 9th and 10th November, 2016.
v) All ATMs and cash dispensing machines will
have to be re-configured to disburse bank notes of ₹ 100/- and ₹ 50/-
denominations prior to reactivation of the machines on 11th November, 2016;
however banks should await separate instructions from Reserve Bank of India on
issuing Mahatma Gandhi (New) series Notes through ATMs and cash dispensing
machines though they can be issued over the counters from Nov 9, 2016.
vi) Every banking company defined under the
Banking Regulation Act, 1949 and every Treasury shall complete and forward a
return in the format specified in Annex-1 showing
the details of the Specified Bank Notes held by it at the close of business as
on 8th November 2016, not later than 13:00 hrs on November 10, 2016 to the
concerned Regional Office of Reserve Bank of India under whose jurisdiction the
Head office of the bank is located. The return should also include details of
Specified Bank Notes recalled from ATMs, Cash Deposit Machines, Cash Recyclers,
Coin Vending Machines, CIT Companies, Business Correspondents, etc.
vii) Arrangement should be made by the
branches to promptly deposit these Specified Bank Notes with the linked
currency chest / RBI and get the amount credited to their account.
viii) Branches should estimate their cash
requirement and obtain from the linked / nearby currency chest /RBI Bank Notes
of other valid denominations.
ix) Cash Deposits machines / Cash Recyclers
should continue to accept Specified Bank Notes upto December 30, 2016.
x) Information Material for educating the
public regarding withdrawal of Legal Tender character of the Specified Bank
Notes (as per Annex-2)
and salient features of the Mahatma Gandhi (New) Series Bank Notes (Annex-3)
are required to be printed/copied in adequate quantity and distributed to the
public / displayed in the banking hall / ATM kiosks.
xi) Banks should identify the staff for
managing the exchange counters and brief them properly about the scheme and the
procedure to be followed. A copy of the FAQs provided in Annex-4 may
be supplied to the staff manning the exchange counters.
xii) Banks should provide adequate number of
note counting machines, UV Lamps, note sorting machines etc. at their counters
to take care of the work load and timely detection of counterfeit notes. As
already advised vide our circular No DCM
(FNVD) No.1134/16.01.05/2016-17 dated October 27, 2016, the banking
hall, public areas and counters should be under CCTV surveillance and recording
should be preserved.
3. Action to be taken on November 10, 2016
a. Bank branches will commence normal
operations on November 10, 2016.
b. Banks have to accord top priority to
provide facility for exchanging / accepting deposits of Specified Bank Notes
and open additional counters to meet the public demand and keep the counters
open for extended ours, if necessary. Maximum staff should be deployed for this
purpose. If necessary banks may consider hiring retired employees for a
temporary period to take care of additional work load.
c. Provision of Exchange Facility:
The specified bank notes held by a person
other than a banking company referred to in sub-paragraph (1) of paragraph 1 or
Government Treasury may be exchanged at any Issue Office of the Reserve Bank or
any branch of public sector banks, private sector banks, foreign banks,
Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks for a
period up to and including the 30th December, 2016, subject to the following
conditions, namely:—
(i) the specified bank notes of aggregate
value of ₹ 4,000/- or below may be exchanged for any denomination of bank notes
having legal tender character, with a requisition slip in the format specified
by the Reserve Bank and proof of identity; the limit of ₹ 4,000/- for exchanging
specified bank notes shall be reviewed after fifteen days from the date of
commencement of this notification and appropriate orders may be issued, where
necessary;
(iii) there shall not be any limit on the
quantity or value of the specified bank notes to be credited to the account
maintained with the bank by a person, where the specified bank notes are
tendered; however, where compliance with extant Know Your Customer (KYC) norms
is not complete in an account, the maximum value of specified bank notes as may
be deposited shall be ₹ 50,000/-;
(iv) The equivalent value of specified bank
notes tendered may 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;
(v) 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;
(vi) cash withdrawal from a bank account over
the counter shall be restricted to ₹ 10,000/- per day subject to an overall
limit of ₹ 20,000/- a week from the date of the notification until the end of
business hours on 24th November, 2016, after which these limits shall be
reviewed;
(vii) there shall be no restriction on the
use of any non-cash method of operating the account of a person including
cheques, demand drafts, credit or debit cards, mobile wallets and electronic
fund transfer mechanisms or the like;
(viii) withdrawal from Automatic Teller
Machines (hereinafter referred to as ATMs) shall be restricted to ₹ 2,000 per
day per card up to 18th November, 2016 and the limit shall be raised to ₹ 4,000
per day per card from 19th November, 2016;
(ix) any person who is unable to exchange or
deposit the specified bank notes in their bank accounts on or before the 30th
December, 2016, shall be given an opportunity to do so at specified offices of
the Reserve Bank or such other facility until a later date as may be specified
by it.
(x) Business Correspondents (BCs) may also be
allowed to exchange Specified Bank Notes upto ₹ 4000/- per person as in the
case of bank branches, against valid identity proof and requisition slip. For
this purpose banks may, at their discretion, enhance the cash holding limits of
BCs at least till December 30, 2016.
(xi) While crediting the value of Specified
Bank Notes to Jan Dhan Yojna Accounts, the usual limits will apply mutatis
mutandis.
4. Reporting Mechanism
Each bank branch exchanging Bank Notes in the
denominations of ₹ 500/- and ₹ 1,000/- shall report at the close of business on
each day starting from November 10, 2016 till the closure of the scheme on
December 30, 2016 (or till any other date thereafter as may be advised by RBI)
by email or Fax to their Controlling Office a statement as per Annex-6 showing
the details of Specified Bank Notes exchanged by it and the respective
Controlling Offices will aggregate these as per Annex-6A and
report to the Department of Currency Management, RBI, Central Office by email on a daily basis.
5. Banks may issue detailed instructions to
their branches advising them to strictly adhere to the norms of the scheme and
procedures laid down above. The staff at the branch level, particularly the
tellers, should be adequately sensitized. For this purpose, information as
available at our website (www.rbi.org.in) and
Government of India website may be used. Staff should familiarise themselves
with the FAQs (as per Annex-4).
6. Banks should make copies of information
material (As available at Annex-2, Annex-3 and Annex-4)
and distribute these to the public.
7. Bank should issue instructions to BCs, ATM
Switch Operators and CIT Companies on various aspects of the above scheme
relevant to them.
8. Banks should monitor the implementation of
the scheme on a day to day basis through a monitoring cell headed by an Officer
not below the rank of a General Manager, who will act as a Nodal Officer. The
Contact details of the Nodal officer will be reported to the concerned Regional
Office of RBI, with a copy to RBI Central Office, Mumbai through email as
indicated below.
9. RBI has opened a Control Room at its
Central Office for monitoring the progress and providing guidance to banks and
members of public. The email id and telephone numbers of the Control room are
as under:
10. Please acknowledge receipt.
Yours faithfully
(P Vijaya Kumar)
Chief General Manager
Encl: as above
RESERVE BANK OF INDIA
Government of India vide
their Notification no. 2652 dated November 8, 2016 have withdrawn the Legal
Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma
Gandhi Series issued by the Reserve Bank of India till November 8, 2016.
This is necessitated to tackle counterfeiting Indian
banknotes, to effectively nullify black money hoarded in cash and curb funding
of terrorism with fake notes.
Starting from November 10, 2016, members of
public/corporates, business firms, societies, trusts, etc., holding these notes
can tender them at any office of the Reserve Bank or any bank branch and obtain
value thereof by credit into their respective bank accounts.
For their immediate cash needs, these notes of value up
to ₹ 4,000 per person can be exchanged for cash over the counter of these bank
branches.
Public are advised to present a valid proof of identity
for availing this exchange facility.
Value credited to their bank accounts can be freely used
by issue of cheques or by remitting through various electronic modes of
transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc. Cash
withdrawals from bank accounts, over the bank counters, will be restricted to a
limited amount of ₹ 10,000 per day subject to an overall limit of ₹ 20,000 a week
from November 9, 2016 till end of business on November 24, 2016. The limits
will be reviewed after this.
All ATMs and other cash machines will remain shut on
November 9, 2016 to facilitate recalibration. When ready, they will be
reactivated and cash drawals from ATMs will be restricted to ₹ 2,000 per day
per card up to November 18, 2016 and the limits shall be raised to ₹ 4000 per
day per card from November 19, 2016.
Any person who is unable to exchange or deposit the
specified banknotes in their bank accounts on or before December 30, 2016 shall
be given an opportunity to do so at specified offices of the Reserve Bank or
such other facility until a later date as may be specified by the Reserve Bank.
RESERVE BANK OF INDIA
All scheduled and
non-scheduled banks, including public, private, foreign, cooperative, regional
rural and local area banks, will remain closed for public on Wednesday,
November 9, 2016.
RESERVE BANK OF INDIA
RBI/2016-17/111
DPSS.CO.PD.No./02.10.002/2016-2017
November 8, 2016
The Chairman and Managing Director / Chief
Executive Officers
All Scheduled Commercial Banks including RRBs /Urban Co-operative Banks / State
Co-
operative Banks /District Central Co-operative Banks/ Authorised ATM Network
Operators /
Card Payment Network Operators/White Label ATM Operators
Madam / Sir,
ATMs –Non-dispensing of Old High Denomination
Notes – Closure of operations
The Government of India has withdrawn from
immediate effect (midnight of November 8, 2016) the legal tender character of
the existing and any older series banknotes in the denominations of ₹ 500 and ₹
1000. As such, dispensing of these Old High Denomination (OHD) banknotes by
banks through their ATMs has to be stopped from midnight of November 8, 2016.
2. In order to facilitate the banks to
prepare themselves for the same, all Public sector /Private sector/Foreign
banks, RRBs, Urban Co-op banks and State Co-op banks have already been advised
to remain closed for public transactions on November 09, 2016.
3. In view of the above, it has been decided
that all ATMs will remain closed for operations from the mid night of Nov 08,
2016 so that they do not dispense the withdrawn old higher denomination
banknotes (OHD). The ATMs may resume functioning from November 11, 2016 upon
their recalibration to dispense bank notes of only ₹ 50 and ₹ 100
denominations.
4. Banks and ATM switches may take necessary
steps to initiate this measure with immediate effect for both on-us and off-us
transactions.
5. Further, so as to ensure customer
convenience, banks are also advised to provide all cash withdrawal transactions
at their ATMs free of cost to their customers till 30 Dec 2016. It has also
been decided that banks may fix a limit of ₹ 2000/- per day per card withdrawal
limit at ATMs, for all their customers, till November 18, 2016.
6. This directive is issued under section
10(2) read with section 18 of the Payment and Settlement Systems Act 2007 (Act
51 of 2007).
Yours faithfully
(Nanda S. Dave)
Chief General Manager
RESERVE BANK OF INDIA
FREQUENTLY
ASKED QUESTIONS
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FAQs on Withdrawal of Legal Tender Character of the
existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/-
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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 ₹500 and ₹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. These Bank Notes can be exchanged for value at any of the 19
offices of the Reserve Bank of India or at any of the bank branches or at
any Head Post Office or Sub-Post Office.
3. How much value will I get?
You will get value for the entire volume
of notes tendered at the bank branches / RBI offices.
4. Can I get all in cash?
No. You will get upto ₹4000 per person in
cash irrespective of the size of tender and anything over and above that
will be receivable by way of credit to bank account.
5. Why I cannot get the entire amount in
cash when I have surrendered everything in cash?
The Scheme does not provide for it, given
its objectives.
6. ₹4000 cash is insufficient for my
need. What to do?
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.
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
exchange facility subject to the caps and other laid down limits in accord
with norms and procedures.
9. Where can I go to exchange the notes?
The exchange facility is available at all
Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op
banks or at any Head Post Office or Sub-Post Office.
10. Need I go to my bank branch only?
For exchange upto 4000 in cash you may go
to any bank branch with valid identity proof.
For exchange over 4000, which will be
accorded through credit to Bank account only, you may go to the branch
where you have an account or to any other branch of the same bank.
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 go to any branch of my bank?
Yes you can go to any branch of your
bank.
12. Can I go to any branch of any other
bank?
Yes, you can go to any branch of any
other bank. In that case you have to furnish valid identity proof for
exchange in cash; both valid identity proof and bank account details will
be required for electronic fund transfer in case the amount to be exchanged
exceeds ₹4000.
13. I have no account but my relative /
friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account
holder relative/friend etc. gives you permission in writing. While
exchanging, you should provide to the bank, evidence of permission given by
the account holder and your valid identity proof.
14. Should I go to bank personally 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.
15. Can I withdraw from ATM?
It may take a while for the banks to
recalibrate their ATMs. Once the ATMs are functional, you can withdraw from
ATMs upto a maximum of ₹2,000/- per card per day upto 18th November, 2016.
The limit will be raised to ₹4000/- per day per card from 19th November
2016 onwards.
16. Can I withdraw cash against cheque?
Yes, you can withdraw cash against
withdrawal slip or cheque subject to ceiling of ₹10,000/- in a day within
an overall limit of ₹20,000/- in a week (including withdrawals from ATMs)
upto 24th November 2016, after which these limits shall be reviewed.
17. Can I deposit Specified Bank Notes
through ATMs, Cash Deposit Machine or cash Recycler?
Yes, Specified Bank Notes can be deposited
in Cash Deposits machines / Cash Recyclers.
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.
19. How much time do I have to exchange
the notes?
The scheme closes on 30th December 2016.
The Specified banknotes can be exchanged at branches of commercial banks,
Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and
RBI till 30th December 2016.
For those who are unable to exchange
their Specified Bank Notes on or before December 30, 2016, an opportunity
will be given to them to do so at specified offices of the RBI, along with
necessary documentation as may be specified by the Reserve Bank of India.
20. 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)
21. 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.
22. I am a foreign tourist, I have these
notes. What should I do?
You can purchase foreign exchange
equivalent to ₹5000 using these Specified Bank Notes at airport exchange
counters within 72 hours after the notification, provided you present proof
of purchasing the Specified Bank Notes.
23. I have emergency needs of cash
(hospitalisation, travel, life saving medicines) then what I should do?
You can use the Specified Bank Notes for
paying for your hospitalisation charges at government hospitals, for
purchasing bus tickets at government bus stands for travel by state
government or state PSU buses, train tickets at railway stations, and air
tickets at airports, within 72 hours after the notification.
24. 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.
25. Where can I get more information on
this scheme?
26. If I have a problem, whom should I
approach?
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RESERVE BANK OF INDIA
NEW RS.2000/- CURRENCY NOTES
The Reserve Bank of India will shortly issue
₹ 2000 denomination banknotes in the Mahatma Gandhi (New) Series, without the
inset letter, bearing signature of Dr. Urjit R. Patel, Governor, Reserve Bank
of India, and the year of printing '2016' printed on the reverse of the
banknote. The new denomination has Motif of Mangalayan on the reverse,
depicting the country’s first venture into the interplanetary space. The base
colour of the note is magenta. The note has other designs, geometric patterns
aligning with the overall colour scheme, both at the obverse and reverse.
The salient features of the banknotes will be
as under:
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Obverse (Front)
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Obverse (Front)
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Reverse (Back)
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1. See through register with denominational numeral
2000
2. Latent image with denominational numeral 2000
3. Denominational numeral २००० in Devnagari
4. Portrait of Mahatma Gandhi at the centre
5. Micro letters ‘RBI’ and ‘2000’ on the left side of the banknote
6. Windowed security thread with inscriptions ‘भारत’,
RBI and 2000 on banknotes with colour shift. Colour of the thread changes
from green to blue when the note is tilted
7. Guarantee Clause, Governor’s signature with Promise Clause and RBI emblem
towards right
8. Denominational numeral with Rupee Symbol, ₹2000 in colour changing ink
(green to blue) on bottom right
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9. Ashoka Pillar emblem on the right
Mahatma Gandhi portrait and electrotype (2000) watermarks
10. Number panel with numerals growing from small to big on the
top left side and bottom right side
For visually impaired
Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar emblem,
bleed lines and identity mark
11. Horizontal rectangle with ₹2000 in raised print on the right
12. Seven angular bleed lines on left and right side in raised
print
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13. Year of printing of
the note on the left
14. Swachh Bharat logo with slogan
15. Language panel towards the centre
16. Motif of Mangalayan
17. Denominational numeral २००० in
Devnagari
Dimension of the banknote will be
66 mm × 166 mm
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The Reserve Bank of India will shortly issue
₹ 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with the
inset letter ‘R’, bearing signature of Dr. Urjit R. Patel, Governor, Reserve
Bank of India, and the year of printing '2016' printed on the reverse of the
banknote.
