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 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 to withdraw has been introduced.
The legal tender character of the notes in Old High Denominations (OHD) of ₹500 and ₹1,000 have been withdrawn. In consequence thereof withdrawn OHD notes cannot be used for transacting business and/or store of value for future usage.
The OHD 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.
You will get value for the entire volume of notes tendered at the bank branches / RBI offices. You will get up to ₹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.
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.
For exchange up to ₹4,000 in cash you may go to any bank branch with valid identity proof. Valid Identity proof is any of the following: Aadhaar Card, Driving Licence, Voter ID Card, Passport, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its staff.
For exchange over ₹4,000, 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.
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs up to a maximum of ₹2,000 per card per day up to November 18, 2016. The limit will be raised to ₹4,000 per day per card from November 19, 2016 onwards.
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) for the first fortnight i.e. up to November 24, 2016. There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms. Existing limits and guidelines will hold good.
OHD notes can be deposited in Cash Deposits machines / Cash Recyclers. From November 11, 2016, CAM, ATM and Recyclers shall become fully functional.
The scheme closes on December 30, 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till December 30, 2016.
For those who are unable to exchange their OHD Banknotes 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 RBI.
Foreign Tourists can purchase foreign exchange equivalent to ₹5,000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.