No Exchange of Old Bank Notes w.e.f 25.11.2016 – Govt Notification

By | November 25, 2016

No Exchange of Old Bank Notes w.e.f 25.11.2016

Now the Old Bank notes of Rs 500/ 1000 can not be exchanged in the Bank/ Post Office over the counter w.e.f 25.11.2016 . These Bank Notes can only be deposited in the Bank /Post office as the Govt of India has omitted the following caluse vide notification S.O. 3543(E) (mentioned below) dated 24.11.2016

 (i) the specified bank notes of aggregate value of [***2000] [**4500 ] [*Rs.4,000/]- or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity;

  • *Limit 4000 was set for exchange of Bank notes ( Rs 500/Rs 100) from 09.11.2016 vide Notification NO  S.O. 3407(E) dated 08.11.2016
  • **Limit for exchange of old Bank note ( Rs 500/Rs 100) was increased  to Rs 4500 w.e.f 14.11.2016 vide Notification NO  S.O. 3446(E) dated the 13th November, 2016.
  • ***Limit for exchange of old Bank note ( Rs 500/Rs 100) was reduced to Rs 2000 w.e.f 18.11.2016 S.O. 3479 (E) dated the 17th November, 2016.

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 24th November, 2016

S.O. 3543(E).— In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in paragraph 1, in sub-paragraph (1), for the words “co-operative bank”, the words “Co-operative Banks (only Urban Co-operative Banks and State Co-operative Banks)” shall be substituted.

2. In the said notification, in paragraph 2, clause (i) shall be omitted with effect from 25th November, 2016 (midnight of 24th November, 2016).

[F. No. 10/03/2016-Cy. I ]

Dr. SAURABH GARG, Jt. Secy.

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E) dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418 (E) dated the 9th November, 2016 and amended vide S.O. 3446(E) dated the 13th November, 2016, S.O. 3449 (E) dated the 14th November, 2016 and S.O. 3479 (E) dated the 17th November, 2016. and S.O. 3488(E) dated the 18th November, 2016 .


MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 18th November, 2016

S.O. 3488(E).— In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E)  dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in paragraph 2, after clause (ix), the following clauses shall be inserted, namely:—

“(x) the limits for cash withdrawal by farmers from their loan and other accounts shall be such, as may be specified by the Reserve Bank of India;

(xi) for wedding expenses a maximum of Rs. 2,50,000/- may be withdrawn in cash from the bank accounts, subject to such conditions as may be specified by the Reserve Bank of India.”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E) dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418 (E) dated the 9th November, 2016 and amended vide S.O. 3446(E) dated the 13th November, 2016, S.O. 3449 (E) dated the 14th November, 2016 and S.O. 3479 (E) dated the 17th November, 2016.


MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 17th November, 2016

S.O. 3479(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in clause (i), with effect from the 18th November, 2016, for the words, letters and figures “value of Rs. 4500/-”, the words, letters and figures “value of Rs. 2000/-” shall be substituted.

2. In the said notification, in paragraph 2, in clause (vi), after the proviso, the following proviso shall be inserted, namely:—

“Provided further that the withdrawal limit provided in the first proviso shall also be applicable to the traders registered with the Agricultural Produce Market Committee (APMC) markets or mandis.”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E) dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418 (E) dated the 9th November, 2016 and amended vide S.O. S.O. 3446(E) dated the 13th November, 2016 and S.O. 3449 (E) dated the 14th November, 2016.


MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 14th November, 2016

S.O. 3449(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in paragraph 2,—

(a) in clause (vi), the words, letters and figures “until the end of business hours on 24th November, 2016, after which these limits shall be reviewed” shall be omitted;

(b) after clause (vi), the following proviso shall be inserted, namely:—

“Provided that cash withdrawal from a current account, which is in operation during the last three months or more, shall be restricted to Rs. 50,000/- a week.”;

(c) in clause (viii), the words, letters and figures “and the limit shall be raised to Rs. 4000/- per day per card from 19th November, 2016” shall be omitted.

[F. No. 10/03/2016-Cy. I]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E) dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418 (E) dated the 9th November, 2016 and amended vide S.O. 3446(E) dated the 13th November, 2016.


NOTIFICATION

New Delhi, the 13th November, 2016

S.O. 3446(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in paragraph 2,—

(a) in clause (i), for the words, letters and figures “value of Rs. 4000/-”, the words, letters and figures “value of Rs. 4500/-” shall be substituted;

(b) clause (ii) shall be omitted;

(c) in clause (vi), for the words, letters and figures “shall be restricted to Rs.10,000/- per day subject to an overall limit of Rs. 20,000/- a week from the date of commencement of this notification”, the words, letters and figures “shall be restricted to Rs. 24,000/- a week” shall be substituted;

(d) after clause (viii), the following proviso shall be inserted, namely:—

“Provided that on and from the date of commencement of this notification, withdrawal limit from any ATM including White Label ATM, which has been recalibrated to dispense the denomination of bank notes of the value of Rs. 500/- and Rs. 2000/-, shall be Rs. 2,500/- per day per card upto 18th November, 2016 and any ATM or White Lebel ATM which has not been recalibrated shall continue to dispense Rs.100/- or Rs.50/- until recalibrated.”.

2. In the said notification, in paragraph 3, clause (5) shall be omitted.

[ F. No. 10/03/2016-Cy. I]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E) dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418 (E) dated the 9th November, 2016.


MINISTRY OF FINANCE

(Department of Economic Affairs)

CORRIGENDUM

New Delhi, the 9th November, 2016

S.O. 3418(E).—In the notification of the Government of India, Ministry of Finance, Department of Economic Affairs, published vide number S.O. 3407(E), dated the 8th November, 2016, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) —

(i) in sub-paragraph (1) of paragraph 1, for “banking company defined under the Banking Regulation Act, 1949 (10 of 1949)”, read “banking company, co-operative bank, corresponding new bank, subsidiary bank, regional rural bank and the State Bank of India as defined under the Banking Regulation Act, 1949 (10 of 1949) (hereinafter referred to as ‘banking company’ or ‘bank’)”;

(ii) in paragraph 2, for “public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Co-operative Banks” read “bank referred to in sub-paragraph (1) of paragraph 1”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy.


MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 8th November, 2016
S.O. 3407(E).─ Whereas, the Central Board of Directors of the Reserve Bank of India (hereinafter referred to as the Board) has recommended that bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees (hereinafter referred to as specified bank notes) shall be ceased to be legal tender;
And whereas, it has been found that fake currency notes of the specified bank notes have been largely in circulation and it has been found to be difficult to easily identify genuine bank notes from the fake ones and that the use of fake currency notes is causing adverse effect to the economy of the country;
And whereas, it has been found that high denomination bank notes are used for storage of unaccounted wealth as has been evident from the large cash recoveries made by law enforcement agencies;
And whereas, it has also been found that fake currency is being used for financing subversive activities such as drug trafficking and terrorism, causing damage to the economy and security of the country and the Central Government after due consideration has decided to implement the recommendations of the Board;
Now, therefore, in exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934) (hereinafter referred to as the said Act), the Central Government hereby declares that the specified bank notes shall cease to be legal tender with effect from the 9th November, 2016 to the extent specified below, namely:—
1. (1) Every banking company defined under the Banking Regulation Act, 1949 (10 of 1949) and every Government Treasury shall complete and forward a return showing the details of specified bank notes held by it at the close of business as on the 8th November, 2016, not later than 13:00 hours on the 10th November, 2016 to the designated Regional Office of the Reserve Bank of India (hereinafter referred to as the Reserve Bank) in the format specified by it.
(2) Immediately after forwarding the return referred to in sub-paragraph (1), the specified bank notes shall be remitted to the linked or nearest currency chest, or the branch or office of the Reserve Bank, for credit to their accounts
2. The specified bank notes held by a person other than a banking company referred to in sub-paragraph (1) of paragraph 1 or Government Treasury may be exchanged at any Issue Office of the Reserve Bank or any branch of public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks for a period up to and including the 30th December, 2016, subject to the following conditions, namely:—
(i) the specified bank notes of aggregate value of Rs.4,000/- or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity;
(ii) the limit of Rs.4,000/- for exchanging specified bank notes shall be reviewed after fifteen days from the date of commencement of this notification and appropriate orders may be issued, where necessary;
(iii) there shall not be any limit on the quantity or value of the specified bank notes to be credited to the account maintained with the bank by a person, where the specified bank notes are tendered; however, where compliance with extant Know Your Customer (KYC) norms is not complete in an account, the maximum value of specified bank notes as may be deposited shall be Rs.50,000/-;
(iv) the equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity;
(v) the equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering;
(vi) cash withdrawal from a bank account over the counter shall be restricted to Rs.10,000/- per day subject to an overall limit of Rs. 20,000/- a week from the date of commencement of this notification until the end of business hours on 24th November, 2016, after which these limits shall be reviewed;
(vii) there shall be no restriction on the use of any non-cash method of operating the account of a person including cheques, demand drafts, credit or debit cards, mobile wallets and electronic fund transfer mechanisms or the like;
(viii) withdrawal from Automatic Teller Machines (hereinafter referred to as ATMs) shall be restricted to Rs.2,000 per day per card up to 18th November, 2016 and the limit shall be raised to Rs.4,000 per day per card from 19th November, 2016;
(ix) any person who is unable to exchange or deposit the specified bank notes in their bank accounts on or before the 30th December, 2016, shall be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by it.
3. (1) Every banking company and every Government Treasury referred to in sub-paragraph (1) of paragraph 1 shall be closed for the transaction of all business on 9th November, 2016, except the preparation for implementing this scheme and remittance of the specified bank notes to nearby currency chests or the branches or offices of the Reserve Bank and receipt of bank notes having legal tender character.
(2) All ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash shall be shut on 9th and 10th November, 2016.
(3) Every bank referred to in sub-paragraph (1) of paragraph 1 shall recall the specified bank notes from ATMs and replace them with bank notes having legal tender character prior to reactivation of the machines on 11th November, 2016.
(4) The sponsor banks of White Label ATMs shall be responsible to recall the specified bank notes from the White Label ATMs and replacing the same with bank notes having legal tender character prior to reactivation of the machines on 11th November, 2016.
(5) All banks referred to in sub-paragraph (1) of paragraph 1 shall ensure that their ATMs and White Label ATMs shall dispense bank notes of denomination of Rs.100 or Rs. 50, until further instructions from the Reserve Bank.
(6) The banking company referred to in sub-paragraph (1) of paragraph 1 and Government Treasuries shall resume their normal transactions from 10th November, 2016.
4. Every banking company referred to sub-paragraph (1) of paragraph 1, shall at the close of business of each day starting from 10th November, 2016, submit to the Reserve Bank, a statement showing the details of specified bank notes exchanged by it in such format as may be specified by the Reserve Bank.
[F.No.10/03/2016-Cy.I]
Dr. SAURABH GARG , Jt. Secy.

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