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No More Exchanging Old 500 And 1000 Rupee Notes At Banks

IndianMoney.com Research Team | Updated On Saturday, December 17,2016, 09:38 AM

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No More Exchanging Old 500 And 1000 Rupee Notes At Banks

 

 

 

The Prime Minister scrapped 500 and 1000 rupee notes, effective, November 8th 2016. Now, the Government has stopped the exchange of old 500 and 1,000 rupees notes, at banks. This is effective midnight, November 24th 2016. Earlier, you could make an exchange (only once), up to INR 2,000 in old notes, for the new currency at banks. Now, you can only exchange your old 500 and 1000 rupee notes, at the Reserve Bank counters. This is only up to INR 2,000 per person.

From today, (November 25th 2016), you can only deposit your old 500 and 1000 rupee notes at banks. You will have to remove money (new currency), using ATM’s or cheques. You can withdraw, up to INR 24,000 a week, per bank account. You can also withdraw money, up to INR 2500 a day per card, at an ATM. The Government wants citizens to stop exchanging old 500 and 1000 rupee notes, focus on opening new bank accounts (if they don't have an account) and deposit old 500 and 1000 rupee notes at banks. You can deposit old 500 and 1000 rupee notes, till December 30th 2016.

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Where can you pay using old 500 rupee notes?

  • Payments you make towards pre paid mobile top-up. This is up to a limit of INR 500 per top-up.
  • Fees you pay in Central or State Government colleges.
  • Purchases you make from consumer cooperative stores. This is only up to INR 5,000 at a time.
  • If you are a foreign citizen, you can exchange foreign currency up to INR 5,000 a week.
  • You can use these old notes at milk booths, petrol pumps and even burial grounds.
  • You can use these old 500 rupee notes to buy metro rail tickets, LPG gas cylinders and even for railway catering.
  • You can use these old notes to pay your water and electricity bills (utility bills).
  • You can pay by old 500 rupee notes, for entry tickets to ASI (Archaeological Survey of India), monuments.
  • If you are a farmer, you can buy seeds at state owned outlets.
  • School fees can be paid up to INR 2,000 per student at central government, state government and local body schools, using old 500 rupee notes.

 

This is only till 15th December 2016....

Bank staff heave a sigh of relief with curb on exchanges of old notes

Finally a sigh of relief…Bank staff who have been overstretched across the country, can breathe easy….No more exchanging old 500 and 1000 rupee notes. Now the burden shifts to the employees of the Reserve Bank. Commercial bank staff complain….Just to exchange INR 2000, there is verification of identity proof (Originals are often missing). Then citizens standing in long queues, have their index finger marked in ink. Bank staff have to do this job, instead of concentrating on the loan business.

Citizens are often angry with bank staff. They say…The Government has asked us to exchange old 500 and 1000 rupee notes, up to INR 4,000 per person, showing valid identity proof. If bank staff say…No the limit is just INR 2,000, citizens are angry. Yes…The government had allowed citizens to exchange old 500 and 1000 rupee notes, up to INR 4,000. This limit was then raised to INR 4,500. Then it was reduced to INR 2,000. Many citizens were unaware of this change and took out their anger on the bank staff….

With the exchange of old 500 and 1000 rupee notes stopped, bank staff can heave a sigh of relief.

 

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IndianMoney.com Research Team

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