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Demonetization of ₹ 500 and ₹ 1000 notes

Demonetization of ₹ 500 and ₹ 1000 notes - Corporate Laws / Banking / SEBI - By: - CA DEV KUMAR KOTHARI - Dated:- 11-11-2016 - Answers by RBI as Frequently Asked Questions (FAQs) on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes - analysis and observations by CA Dev Kumar Kothari From FAQs on website of RBI with highlights added for analysis Observations of author 1. Why is this scheme? The incidence of fake Indian currency notes in higher denomination h .....

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ntroduced. In view of depreciated value of Rupee, notes of ₹ 500/- cannot be regarded a high value note. This is evident that even if we withdraw ₹ 1000/- from ATM 80% probability is that we will get two notes of ₹ 500/- or least chances are of getting notes of ₹ 100/- Even in case of withdrawal of 10K, 15K, 20K chances are that hardly ₹ 500 or at most ₹ 1000/- will be in notes of ₹ 100/- Black money generation due to bribes will not stop, corrupt office .....

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r declared / accounted money is concerned, there should not be a question mark while depositing into bank or exchange of notes. 3. How much value will I get? You will get value for the entire volume of notes tendered at the bank branches / RBI offices. Full value will be received/ credited 4. Can I get all in cash? No. You will get upto ₹4000 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. Rs.4000/- .....

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ces in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc. Why one should not be allowed to withdraw money in his account? And insisted to use electronic means. 7. What if I don t have any bank account? You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements. There must be relaxation up to ₹ 20K and m .....

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banks or at any Head Post Office or Sub-Post Office. RBI and almost all banks and their branches are supposed to extend facility. 10. Need I go to my bank branch only? For exchange upto 4000 in cash you may go to any bank branch with valid identity proof. For exchange over 4000, 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. In case you want to go to a branch of any other bank where you are n .....

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of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4000. Other banks and even other branches are likely to be reluctant. 13. I have no account but my relative / friend has an account, can I get my notes exchanged into that account? Yes, you can do that if the account holder relative/friend etc gives you per .....

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the branch you may send your 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. Without personal visit, and at home branch it seems difficult to get work done. 15. Can I withdraw from ATM? It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs upto a maximum of ₹2,000/- per card per day upto 18th No .....

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first fortnight i.e. up to 24th November 2016. There should not be limit for withdrawals against old deposits in account. 17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler? Yes, OHD notes can be deposited in Cash Deposits machines / Cash Recyclers. 18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode? You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment. 19. How .....

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the Reserve Bank of India. Remember last date to exchange OHD notes by 30.12.2016. Later on only at RBI on satisfaction of further requirements OHD notes will be changed the process will be complicated to ensure safety and security measures to avoid misuse. 20. I am right now not in India, what should I do? If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank .....

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NRO account. NRO a/c is just like other bank a/c 22. I am a foreign tourist, I have these notes. What should I do? You can purchase foreign exchange equivalent to ₹5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes. 23. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do? You can use the OHD notes for paying for your hospitalisation charges .....

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, Public Sector Unit to its Staff. Usual identity proof. 25. Where can I get more information on this scheme? Further information is available at our website (www.rbi.org.in) and GoI website (www.rbi.org.in) 26. 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 Email id has not been mentioned. How far helpline phone will be helpful and useful , will be seen on experience in this regard after we phone. FAQ .....

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level of operations we find that even a vegetable and fruit vendor and even a pan shop has collection at the end of day he may be holding 3000- 7000 or more in currency notes of ₹ 500/- and 1000/- which he use for purchasing goods on next day for resell. Many times we notice that many customers of such shops exchange ₹ 500/- and ₹ 1000/- notes (withdrawn from ATM) with small denomination notes of ₹ 100/- ,50/- , 20/-, 10/- etc. for meeting petty expenses. Similarly even .....

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d 10th of each month. Many of their employees do not have bank account. There will be many cases of cash withdrawn for such purposes. They will face difficulty. Farmers: Farmers sell their produce and get cash payment which they use for paying goods required for farming. They will also face difficulty. House hold expenses: 1 -8th day of any month is crucial for cash withdrawn for meeting family expenses. Salary payment is usually made between this period. If salary is deposited in bank account, .....

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