In a surprise move the government declared that ₹500 and ₹1000 notes will be illegal from Tuesday midnight.
In his address to the nation, Prime Minister Narendra Modi explained the move as the government’s attack on black money.
These notes can be exchanged for lower denomination notes at post offices and banks from November 10 till the end of March 2017.
Here’s what you need to know and do in the next few days:
Where can I exchange/ deposit my Rs 500 and Rs 1000 notes?
From November 10 till November 30 you can deposit the old notes at your nearest bank or post office. But withdrawals from banks are capped at ₹10000 per day and ₹20000 per week. This limit will be increased in the coming days.
Proof of identity is required each time you go to banks for exchange and withdrawal of money.
Besides depositing money in bank accounts, the Rs 500, Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24. But the limit of exchange is Rs 4,000 per day.
But banks will remain closed tomorrow (November 9) allowing them time to cope with the new directive.
What are the restrictions on ATM withdrawals?
ATMs will be closed on Wednesday and Thursday. But from Friday you can withdraw money and ATMs will stop dispensing the existing ₹500 and ₹1000 notes.
ATM withdrawals will be restricted to Rs 2,000 per day till November 11, after which this limit may be increased slowly.
Where can I still use my Rs 500, Rs 1000 notes?
Till November 11, the following places and institutions will continue to accept Rs 500 and Rs 1000 notes for payment:
- Government hospitals
- Railway, airline, government bus ticket booking counters
- Petrol, diesel and gas stations authorised by public sector oil companies
- Consumer co-operative stores authorised by state or central government.
- Milk booths authorised by state governments
- Crematoriums and burial grounds
- Where can I get the new currency notes?
RBI will issue new currency notes of ₹500 and ₹2000 from November 10. These notes will have new design.
