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Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- and The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 (Updated as on January 04 2017)

News and Press Release - Dated:- 4-1-2017 - 1. Why was the Scheme of Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- 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 misus .....

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the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn.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 (SBNs) were allowed to be exchanged for value at RBI Offices till December 30, 2016 and till November 25, 2016 at bank branches/Post Offices and deposited at any of the bank branches of commercial banks/ Regional Rural Banks/ Co-operative .....

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ecember 30, 2016) to provide for cessation of liabilities on the Specified Banknotes and for connected/incidental matters and comes into effect from December 31, 2016. In terms of this ordinance, with effect from December 31, 2016, the specified banknotes shall cease to be the liabilities of Reserve Bank of India and shall cease to have the guarantee of the Central Government. A grace period has been provided during which the specified banknotes can be deposited at five RBI Offices (Mumbai, New .....

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KYC (Know Your Customer ) compliant bank account of the tenderer. Holding the specified banknotes (SBNs) for the purpose of deposit by Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 and Non Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 is permissible during grace period. With effect from January 2, 2017 Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 can avail this facility upto M .....

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e of the SBNs tendered whichever is higher. Any person aggrieved by the refusal of Reserve Bank to credit the value of notes as mentioned above may make a representation to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to him/her. In terms of Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly or voluntarily hold , transfer or receive any specified banknotes. After the expiry of grace period, holding of not more than 10 notes i .....

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ntion/ default shall deemed to be guilty and will be liable to be proceeded against and punished. If the offence is proved to be attributable to the conduct by any director/manager/ secretary/ officer/ employee of the company, such person shall also be deemed to be guilty of the offence and will be liable to be proceeded against and punished accordingly. 4. How can NRIs and the Indian citizens who were abroad exchange the SBNs? In terms of Paragraph 4.1 of the GoI Ordinance No. 10 of 2016 dated .....

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nai, Kolkata, and Nagpur. The facility can be availed only in individual capacity and only on one occasion during the period. No third party tender is permissible under the facility. This facility will not be available for Indian citizens resident in Nepal, Bhutan, Pakistan and Bangladesh. The details of the facility including terms/ conditions and modalities thereof are available in our circular DCM (Plg) No 2170/10.27.00/2016-17 dated December 31, 2016. 5. Is the facility for exchange of SBNs .....

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00/- per day per card. There is no change in weekly withdrawal limits. 7. What are the withdrawal limits for JDY account holders? A JDY account holder can avail the deposit facility till December 30, 2016 subject to the caps and other laid down limits in accord with norms and procedures. With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launderers and legal consequences under the Benami Property Transaction & Money Laundering laws, it has .....

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uineness of such withdrawals and duly documenting the same on bank s record. (2) Limited or Non-KYC compliant account holders may be allowed to withdraw ₹ 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of ₹ 10,000. 8. Does the limit of ₹ 24000 withdrawal apply to withdrawals from bank account of one bank from another bank? These limits are not applicable to cash withdrawal from a bank account by one bank from another ba .....

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ly advised all banks to permit withdrawal of cash by DCCBs from their accounts based on need. 10. Can I withdraw cash against cheque? Yes, you can withdraw cash against withdrawal slip or cheque subject to a weekly limit of ₹ 24000/- (including withdrawals from ATMs and over the counter) from the bank accounts. Business entities having Current Accounts which are operational for last three months or more will be allowed to draw ₹ 50,000/-per week. This can be done in a single transact .....

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