The Prime Minister Narendra Modi, made an announcement on November 8th 2016 and scrapped 500 and 1000 rupee notes. These notes are no longer legal tender, as of November 8th 2016, Midnight. This move to break the back of black money and terrorism at the same time, is widely regarded as a super move. But there is one thing you need to be careful of.
There are long queues in front of banks. All citizens are waiting anxiously to exchange 500 and 1000 rupee notes. No citizen is willing to give up his position in the queue at the bank, for you. So before you grab the 500 and 1000 rupee notes and rush to the bank, take a little time to read this.
You need a valid identity proof to exchange your 500 and 1000 rupee notes, at the bank and post office.
This is the valid identity proof you can use:
The bank or post office, gives you a note exchange form, for changing your old high denomination bank notes of 500 and 1000. You have to fill this form and submit it at the bank. Your bank will not accept the 500 and 1000 rupee notes you submit, unless you fill this form.
When you exchange your 500 and 1000 rupee notes at the bank, you need to submit a photocopy of your identity proof. Without a photocopy of your valid identity proof, banks will not exchange your 500 and 1000 rupee notes.
You can deposit old notes of 500 and 1000 rupees, at a bank or post office, till December 30th 2016. There are no limits imposed on your deposits. What does this mean? If you have earned money the legal, honest way….you have nothing to fear. If the money you deposit in the bank is not black money, tax officials will not harass you. What about exchanging your 500 and 1000 rupee notes? You can exchange your 500 and 1000 rupee notes, up to INR 4,000 per person in cash, at the bank branch. This is till November 24th 2016.
If you exchange more than this amount, the excess amount is credited to your bank account. You can go to the bank branch where you have an account, or to any branch of the same bank. You can also go to any branch of a bank and submit valid identity proof and your bank account details. Money will be transferred via electronic fund transfer, to your bank account. If you don’t have a bank account, simply walk into a bank branch, do your KYC (Know Your Customer) and open a bank account.
So boldly go to the bank, follow the above procedure and exchange your 500 and 1000 rupee notes.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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