- Prime Minister Narendra Modi’s announcement to demonetise Rs.500 and Rs.1,000 notes currently in use has caused a panic among the public. Here is an explainer from the RBI on what is all about.
Why is this scheme introduced?
- The incidence of fake Indian currency notes of 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 anti-national 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 has been introduced.
How much value will I get?
- You will get value for the entire volume of notes tendered at the bank branches / RBI offices.
Can I get all in cash?
- No. You will get up to Rs.4,000 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.
A sum of Rs.4000 cash is insufficient for my needs.
- 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 and credit/debit cards.
What if if I have only Jan-Dhan account?
- A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accordance with norms and procedures.
Where can I go to exchange the notes?
- The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/Regional Rural Banks/ Urban Cooperative Banks ( UCBs )/State Co-op banks or at any Head Post Office or Sub-Post Office.
Need I go to my bank branch and not other banks’?
- For exchange up to Rs.4,000 in cash you may go to any bank branch with identity proof.
- For exchange of more than Rs.4,000, which will be credited to your bank account only, you may go any branch of a bank with which you have an account.
- To use other banks’ branches, you will need identity proof and your bank account details