Bank Withdrawal Limits – Some Questions and answers from RBI
Why is this scheme introduced?
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 antinational 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.
What is this scheme?
The legal tender character of the existing bank notes in denominations of Rs.500 and Rs.1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank 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 of commercial banks/ Regional Rural Banks/ Co-operative banks or at any Head Post Office or Sub-Post Office.
District Central Cooperative Banks (DCCBs) can allow their existing customers to withdraw money from their accounts upto Rs.24,000 per week upto November 24, 2016. No exchange facility against the specified bank notes (Rs.500 and Rs.1000) or deposit of such notes should be entertained by DCCB’s. The Reserve Bank has accordingly advised all banks to permit withdrawal of cash by DCCBs from their accounts based on need.
Does the scheme apply to pre 2005 banknotes of Rs.500 and Rs.1000?
Yes, specified banknotes (SBN) include pre 2005 banknotes in the denominations of Rs.500 and Rs.1000. Banks should accept for exchange as well as for deposit, pre-2005 bank notes in the denominations of Rs.500 and Rs.1000 under the scheme.
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 upto Rs.2000 per person in cash exchange over the counter irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.
Can I exchange Rs.2000 more than once?
No. You can exchange upto Rs.2000 only once. As per the Standard Operating Procedure advised to banks, while exchanging the specified banknotes, the bank branch concerned, issue office of RBI or post offices would put indelible ink mark on the right index finger of the customer so as to identify that he/she has exchanged the old currency notes. The indelible ink will be applied before the old notes are taken or new notes are given. Indelible ink on the index finger of the left hand or any other finger of the left hand may not be used as a pretext to deny exchange of old notes.
This procedure would be introduced to begin with in the metro cities and later extended to the other areas.
Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to a weekly limit of Rs.24000/- (including withdrawals from ATMs and over the counter) from the bank accounts. The ceiling of Rs.10,000/- in a day stands withdrawn. The limits apply upto November 24, 2016, after which these may be reviewed.
Business entities having Current Accounts which are operational for last three months or more will be allowed to draw Rs.50,000/- per week. This can be done in a single transaction or multiple transactions. This facility has been extended to Overdraft and Cash Credit accounts also. Accordingly, holders of current / overdraft / cash credit accounts, which are operational for the last three months or more, may withdraw upto Rs.50000 in cash, in a week. Such withdrawals may be disbursed predominantly in Rs.2000 denomination bank notes. This enhanced limit for weekly withdrawal is not applicable for personal overdraft accounts.
I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
Till the November 24, 2016 midnight, specified banknotes can be used as under:—
(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor’s prescription;
(b) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;
(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof;
(d) for purchase at milk booths operating under authorisation of the Central or State Governments;
(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;
(f) for payments at crematoria and burial grounds;
(g) at international airports, for arriving and departing passengers, who possess specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character;
(h) for foreign tourists to exchange foreign currency or specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character.
(i) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;
(j) for payments on purchases LPG gas cylinders;
(k) for making payments to catering services on board, during travel by rail;
(l) for making payments for purchasing tickets for travel by suburban and metro rail services;
(m) for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India.
(n) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;
(o) for making payments towards utility charges including water and electricity -which shall be restricted to individuals or households for payment of only arrears or current charges and no advance payments shall be allowed.
If I have a problem, whom should I approach?
You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944