Frequently Asked Questions on Withdrawal of Rs. 500 and Rs. 1000 Banknotes
Why has the scheme been 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The legal tender character of the notes in denominations of ₹ 500 and ₹ 1000 have been withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage.
The OHD 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 in India or at any Head Post Office or Sub-Post Office in India.
Can I get the entire value of my OHD notes in cash ?
The Scheme does not provide for it, given its objectives. You can use balances 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.
Can I get cash in exchange for specified banknotes over the bank counter?
No over the counter exchange (in cash) of SBNs is not permitted from November 25, 2016. Members of public who approach the banks for over the counter exchange of SBN are encouraged to deposit SBNs into their bank accounts. Banks have been advised to facilitate opening of new accounts for unbanked people.
Do I need to exchange the OHD notes at my bank branch only?
For exchange upto ₹2000 in cash you may go to any bank branch with valid identity proof.
For exchange over ₹2000, 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 not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank in India. 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 ₹2,000.
Should I go to bank personally or can I send the notes through my representative?
Personal visit to the branch is preferable. In case it is not possible for you to visit the branch in India 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.
Can I withdraw from an ATM in India?
The ATMs are progressively getting recalibrated. As and when they are recalibrated, the cash limit of such ATMs will stand enhanced to ₹ 2500/- per withdrawal. This will enable dispensing of lower denomination currency notes for about ₹ 500/- per withdrawal. Other ATMs which are yet to be recalibrated, will continue to dispense ₹ 2000/- till they are recalibrated.
Banks have also been advised to increase the Business Correspondents’ limit of dispensing cash to ₹ 2500/- for withdrawal from bank accounts.
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. The ceiling of ₹10,000/- in a day stands withdrawn. The limits apply upto 24th November 2016, after which these may be reviewed.
Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, Specified Bank Notes can be deposited in Cash Deposits machines / Cash Recyclers or at bank branches more than once till December 30, 2016. At bank branches, customers should use separate pay-in-slips for depositing specified bank notes and other legal tender bank notes.(If a depositor has a mixed bunch of SBN and legal tender notes, he has to segregate them and submit two separate Pay-in slips).
How much time do I have to exchange the notes?
The scheme closes on December 30, 2016. The OHD Banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till December 30, 2016.
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 RBI.
I am currently situated overseas and I have some ₹500 & ₹1,000 bank notes. What should I do?
The specified bank notes can be exchanged or deposited in the NRO bank account by December 30, 2016 by visiting any of the ICICI Bank branches in India.
In case it is not possible for you to visit a branch in India by December 30, 2016, an opportunity will be given to you to do so at specified offices of the Reserve Bank of India (RBI), along with necessary documentation as may be specified by the RBI.
Further, you can authorise a representative who can deposit the cash in your NRO account on your behalf.
The authorised representative can approach the branch with the following documents:
- Copy of the Authority letter signed by the account holder(s)
- Copy of the Passport of the account holder which is self attested by the account holder (Incase the authority letter is a scanned copy)
- Valid Identity proof* of the authorised representative
(*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).
I am an NRI/ PIO. I have only a NRE account. I do not have a NRO account. Can I deposit my cash in the NRE account?
You cannot deposit INR cash in the NRE account. You will need to make a request for opening of a NRO account in the same customer Id through the Internet banking logged in section or by calling our 24x7 customer care or placing a request at the branch in India. The account will be opened within 2 working days. Post which you or your authorized representative may deposit the cash in the NRO account
Will the change in the withdrawal limits at ATMs in India affect the withdrawal limit of foreign currency from an ATM at an overseas location?
No, it will not affect foreign currency withdrawals.
The change in withdrawal limits is applicable only to INR withdrawals from ATMs in India. The international debit card will continue to work at overseas ATMs for foreign currency cash withdrawal. There will be no change in the withdrawal limits in case of foreign currency withdrawal from an ATM located outside India.
I have a mandate holder in the NRO account. My mandate holder in India will be visiting the branch to deposit the cash? Do I require to provide another authorization request for acceptance of the cash?
No, since the representative visiting the branch is the existing mandate holder to the non-resident account no separate authorisation request is required
I am an NRI/ PIO. Do I have to complete the Re-KYC in my account to be able to exchange or deposit the specified bank notes?
For accounts where the Re-KYC or FATCA declaration is due, the Branches in India are authorised to accept the cash up to a maximum limit of ₹50,000.
Post completion of Re-KYC & updation of FATCA details in the account, the specified banknotes may be deposited in the NRO account without any limit. The account holder can submit the Re-KYC documents and the FATCA declaration through Internet Banking*.
*Applicable to account holders residing in FATF countries only.
Do I require PAN / Form 60 of the account holder to be submitted for cash deposits in NRO accounts?
Yes, PAN is required for single INR cash deposits in the NRO account of value equal to or greater than ₹50,000 or multiple cash deposits of cumulative value equal to or greater than ₹250,000. Form 60 will not be acceptable.
I am a foreign tourist in India, I have these notes. What should I do?
The exchange facility has been stopped at bank branches with effect from November 25, 2016. However, Foreign citizens will be permitted to exchange foreign currency up to ₹ 5000 per week at Branches in India till December 15, 2016, subject to the foreign tourist submitting a self-declaration that this facility has not been availed of during the week along with the self-attested copy of the passport. Necessary entry to this effect will be made in their passports.
I have emergency needs of cash in India (hospitalization, travel, lifesaving medicines) then what I should do?
Till the November 24, 2016 midnight, specified banknotes can be used as under:-
- for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor's prescription;
- at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;
- for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof;
- for purchase at milk booths operating under authorisation of the Central or State Governments;
- for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;
- for payments at crematoria and burial grounds;
- 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;
- 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.
- for making payments in all pharmacies on production of doctor’s prescription and proof of identity;
- for payments on purchases LPG gas cylinders;
- for making payments to catering services on board, during travel by rail;
- for making payments for purchasing tickets for travel by suburban and metro rail services;
- for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India.
- for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;
- 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
Is there a limit to deposit cash in the bank account with the OHD?
- If a customer is depositing in his own bank account in India and the account is KYC compliant, there is no limit on the quantity or value of the OHD. ID proof of the account holder shall be required. Original Seen and verification (OSV) shall be to be done by the branch official. Signature on the deposit slip shall to be cross checked with our Bank records.
- In case customer himself/herself has not visited the branch and authorized a third person to deposit OHD Banknotes in the bank account in India and the account is KYC compliant ID proof of the bearer along with OSV to be done. Authorization letter signed by the account holder shall be required. Signature on the authorization letter shall be as per mode of operation in the account.
- If the account is due for Re-KYC, up to Rs. 50,000/- can be deposited in the account along with valid ID proof. For deposition more than Rs.50,000/- full Re-KYC documents needs to be obtained.
If my account is inactive/dormant, how do we deposit OHD in the account?
If your account is inactive, cash deposit can be done smoothly as done regularly. If your account is dormant i.e. unused for 24 months the same should be activated by visiting a Bank branch/ Calling our 24x7 international customer care post which transaction can be undertaken
Is there any restriction on usage of Debit/Credit card or Internet Banking transfers?
There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, Internet Banking and electronic fund transfer mechanisms. All the conditions to cheques, demand drafts, credit/debit cards, internet banking and electronic fund transfer mechanisms shall be applicable.
Will cash transaction charges be levied if I deposit/withdraw money from my account in excess of free limits?
No, Bank has decided to waive cash transaction charges (deposit and withdrawals) in India up to November 30, 2016 for all savings account customers irrespective of number of cash transactions done by the customer. This charges wavier is applicable for transactions done at branch over the counter and Cash Acceptor Machines.
What will be the levied ATM charges?
It has been decided that banks shall waive levy of ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at other banks’ ATMs, irrespective of the number of transactions during the month. This waiver is applicable on transactions done at ATMs from November 10, 2016 till December 30, 2016, subject to review.
Can I withdraw a higher amount for the purpose of my ward’s wedding?
With a view to enable members of the public to perform and celebrate weddings of their wards it has been decided to allow a cash withdrawal of maximum ₹ 250,000/- from their bank deposit accounts till December 30, 2016 to meet wedding related expenses. This is subject to the following conditions:
- Withdrawals are permitted only from fully KYC compliant accounts.
- The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.
- Withdrawals can be made by either of the parents or the person getting married. (Only one of them will be permitted to withdraw).
- Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.
- The application for withdrawal shall be accompanied by following documents:
- An application as per the format
- Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as Marriage hall booking, advance payments to caterers, etc.
- A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account. The list should indicate the purpose for which the proposed payments are being made
- PAN Number & photocopy of PAN of person making withdrawal
- Identity proof of Bride and Groom