What to do with the Rs 500 and Rs 1000 bank notes that you have

For Resident Indians

Resident Indians can get their Old High Denomination (OHD) notes exchanged for cash only up to a limit of Rs 4000 (applicable till the 24th of November, after which it may be reviewed). This 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.  The tenderer can  go to any of these centers with 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.) They will also have to provide a Requisition slip as per the format specified by RBI.

Any exchange over Rs. 4000 will be accorded through credit to Bank account only. For this a person may visit a branch of their bank or any other bank even where they are not maintaining a bank account. In case the tenderer wants to go to a branch of any other bank, they will have to furnish valid identity proof and bank account details required for electronic fund transfer to their account. There is no limit on the value of OHD notes that can be credited to the account of the tenderer, provided the account is compliant with the extant KYC norms. In case the account is not compliant, a limit of Rs 50,000 will be applicable.

After depositing, account holders can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs 10,000/- in a day within an overall limit of Rs 20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. upto 24th November 2016. Once the ATMs are functional, account holders can also withdraw from ATMs upto a maximum of Rs 2,000/- per card per day upto 18th November, 2016. The limit will be raised to Rs 4000/- per day per card from 19th November 2016 onwards. All other modes of payment from bank account whether through cheque or electronic modes such as Internet banking, credit/debit cards etc. are fully functional.

Personal visit to the branch for depositing OHD notes is preferable. In case it is not possible to visit the branch tenderer may send their 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.

In case a person does not have a bank account, they can either open one or they can get the notes credited into the account of a relative/friend, provided the account holder relative/friend etc gives permission in writing. While exchanging, the person should provide to the bank, evidence of permission given by the account holder and their valid identity proof.

The scheme closes on 30th December 2016. For those who are unable to exchange their Old High Denomination 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 Reserve Bank of India.

For NRIs

NRIs can deposit any OHD banknotes that they have to their NRO account.

For any OHD banknotes in India, NRIs may authorise in writing enabling another person in India to deposit the notes into their bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by the NRI 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.)

For any OHD banknotes outside India, NRIs can try visiting the nearest branch of an Indian bank. For residents of India, they can go to branch of any bank even where they are not maintaining an account and the same may be applicable for NRIs also. Tenderer will have to furnish valid identity proof and bank account details required for electronic fund transfer to their account.

Finally in a worst case scenario, 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 Reserve Bank of India.

Disclaimer: While we at ORO Wealth have endeavored to keep this information as accurate as possible, given the uncertainty, ORO Wealth cannot accept any responsibility for accuracy of the information provided.