DEMONETIZATION OF HIGH VALUE CURRENCIES
DEADLINE EXTENDED UP TO 07TH OCTOBER 2023
Dated 30.09.2023 : Reserve Bank of India ( RBI ) had announced ,on 19.05.2023 , that the ₹2000 denomination banknotes shall be withdrawn from circulation. It had also offered the facility for deposit and/or exchange of ₹2000 banknotes through bank branches for members of the public up to September 30, 2023.
Now today RBI has extended the time period till 07th , October 2023 . . With effect from October 8, 2023, banks will stop accepting ₹2000 banknotes for credit to accounts or exchange to other denomination banknotes. But ₹2000 banknotes can be presented at the 19 Regional Offices of RBI having Issue Departments (RBI Issue offices) for credit to the bank accounts in India or exchange .
As per RBI PRESS RELEASE :
1. With effect from October 08, 2023, the procedure for deposit / exchange of ₹2000 banknotes shall be as under:
2. The deposit / exchange at bank branches shall be stopped.
3. ₹2000 banknotes can continue to be exchanged by individuals / entities at the 19 RBI Issue Offices up to a limit of ₹20,000/- at a time.
4. Individuals / Entities can tender ₹2000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount.
5.Individuals / Entities from within the country can also send ₹2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.
6. Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.
7. Courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit / exchange ₹2000 banknotes at any of the 19 RBI Issue Offices without any limit.
To read RBI NOTIFICATION in this regard , CLICK HERE and to read Press Release , CLICK HERE
Dated 30.09.2023 : Reserve Bank of India ( RBI ) had announced ,on 19.05.2023 , that the ₹2000 denomination banknotes shall be withdrawn from circulation. It had also offered the facility for deposit and/or exchange of ₹2000 banknotes through bank branches for members of the public up to September 30, 2023.
Now today RBI has extended the time period till 07th , October 2023 . . With effect from October 8, 2023, banks will stop accepting ₹2000 banknotes for credit to accounts or exchange to other denomination banknotes. But ₹2000 banknotes can be presented at the 19 Regional Offices of RBI having Issue Departments (RBI Issue offices) for credit to the bank accounts in India or exchange .
As per RBI PRESS RELEASE :
1. With effect from October 08, 2023, the procedure for deposit / exchange of ₹2000 banknotes shall be as under:
2. The deposit / exchange at bank branches shall be stopped.
3. ₹2000 banknotes can continue to be exchanged by individuals / entities at the 19 RBI Issue Offices up to a limit of ₹20,000/- at a time.
4. Individuals / Entities can tender ₹2000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount.
5.Individuals / Entities from within the country can also send ₹2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.
6. Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.
7. Courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit / exchange ₹2000 banknotes at any of the 19 RBI Issue Offices without any limit.
To read RBI NOTIFICATION in this regard , CLICK HERE and to read Press Release , CLICK HERE
YOU CAN EXCHANGE RS 2,000 NOTES FROM TOMORROW :
Dated 22.05.2023 : As per RBI instructions , all bank branches will start exchanging Rs 2000 currency notes from tomorrow the Tuesday 23rd , June 2023 . One can exchange a maximum of 10 currency notes of Rs 2,000 at a time . However there is no restriction on the number of times one can exchange the notes .
One can deposit any number of Rs 2000 currency notes to one's account following usual norms adhering to KYC guidelines . Now onward , banks will not issue Rs 2000 currency notes to the public . They have been asked to receive the RS 2000 currency notes till 30th , September 2023 both for exchange and deposit .
As Rs 2000 currency notes continue to be legal tenders , they can be used for regular transactions now . However public are encouraged to surrender them to banks .
You may also read FAQ published by the RBI on the subject
Dated 22.05.2023 : As per RBI instructions , all bank branches will start exchanging Rs 2000 currency notes from tomorrow the Tuesday 23rd , June 2023 . One can exchange a maximum of 10 currency notes of Rs 2,000 at a time . However there is no restriction on the number of times one can exchange the notes .
One can deposit any number of Rs 2000 currency notes to one's account following usual norms adhering to KYC guidelines . Now onward , banks will not issue Rs 2000 currency notes to the public . They have been asked to receive the RS 2000 currency notes till 30th , September 2023 both for exchange and deposit .
As Rs 2000 currency notes continue to be legal tenders , they can be used for regular transactions now . However public are encouraged to surrender them to banks .
You may also read FAQ published by the RBI on the subject
RBI TO WITHDRAW RS 2000 CURRENCY NOTES :
Dated 19.05.2023 : Reserve Bank of India ( RBI ) today announced that the ₹2000 denomination banknotes shall be withdrawn from circulation. The ₹2000 banknotes will continue to be legal tender.
The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. With fulfilment of that objective and availability of banknotes in other denominations in adequate quantities, printing of ₹2000 banknotes was stopped in 2018-19. A majority of the ₹2000 denomination notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continue to be adequate to meet the currency requirement of the public.
In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.
RBI has given the following instructions to the banks for handling the currency exchange from the publics :
A . Handling of existing stock and receipts
Dated 19.05.2023 : Reserve Bank of India ( RBI ) today announced that the ₹2000 denomination banknotes shall be withdrawn from circulation. The ₹2000 banknotes will continue to be legal tender.
The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. With fulfilment of that objective and availability of banknotes in other denominations in adequate quantities, printing of ₹2000 banknotes was stopped in 2018-19. A majority of the ₹2000 denomination notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continue to be adequate to meet the currency requirement of the public.
In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.
RBI has given the following instructions to the banks for handling the currency exchange from the publics :
A . Handling of existing stock and receipts
- All banks shall discontinue issue of ₹2000 denomination banknotes with immediate effect. ATMs/Cash Recyclers may also be reconfigured accordingly.
- Banks holding Currency Chests (CCs) shall ensure that no withdrawal of ₹2000 denomination is allowed from the CCs. All balances held in the CCs shall be classified as unfit and kept ready for dispatch to respective RBI offices.
- All banknotes in this denomination received by the banks shall be sorted immediately through Note Sorting Machines (NSMs) for accuracy and genuineness and deposited in the currency chests under the Linkage Scheme or kept ready for dispatch to the nearest Issue Office of RBI.
- The instructions contained in our Master Direction dated April 03, 2023 on detection, reporting and monitoring of counterfeit notes shall be meticulously followed.
- The facility for deposit and/or exchange of ₹2000 banknotes shall be available for members of the public up to September 30, 2023.
- Deposit of ₹2000 banknotes into accounts maintained with all banks can be made in the usual manner, that is, without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable Statutory requirements. The banks shall also be required to comply with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, where applicable.
- The facility for exchange of ₹2000 banknotes shall be provided to all members of the public by all banks through their branches.
- With a view to minimise inconvenience to the public, to ensure operational convenience and avoid disruption of the regular activities of bank branches, all banks may exchange ₹2000 banknotes upto a limit of ₹20,000/- at a time.
- Business Correspondents (BCs) may also be allowed to exchange ₹2000 banknotes upto a limit of ₹4000/- per day for an account holder. For this purpose, banks may, at their discretion, enhance the cash holding limits of BCs.
- To give time to the banks for preparatory arrangements, members of the public have been requested to approach the banks/branches from May 23, 2023 for availing exchange facility. Deposit of ₹2000 banknotes may continue as per the normal banking practice.
- For providing deposit / exchange facility to people residing in remote/ unbanked areas, banks may consider using mobile vans, if necessary.
- While crediting the value of ₹2000 notes to Jan Dhan Yojna Accounts / Basic Savings Bank Deposit (BSBD) Accounts, the usual limits will apply mutatis mutandis.
- The banks shall to the extent feasible make special arrangements to reduce inconvenience to the senior citizens, persons with disabilities and women seeking to exchange/deposit ₹2000 notes.
To read RBI NOTIFICATION IN THIS REGARD , CLICK HERE
PRIME MINISTER OF INDIA , MR MODI , ANNOUNCED ON 08.11.2016 THAT RS 500 AND RS 1,000 NOTES WILL NO LONGER BE LEGAL TENDERS FROM MIDNIGHT . BANKS AND ATMS WOULD BE CLOSED ON 09.11.2016 . THE EXISTING RS 500 AND RS 1,000 NOTES CAN BE DEPOSITED IN ONE'S ACCOUNT WITH A BANK OR POST OFFICE FROM 10 TH NOV TO 30TH DEC 2016 . CURRENCY VALUE UP TO RS 4,000 CAN BE EXCHANGED FROM ANY BANK OR POST OFFICE TILL NOV 24TH , BY PRODUCING ID PROOF . HOWEVER FOR 72 HOURS , GOVT HOSPITALS , RAILWAY , AIR AND GOVT BUS BOOKING CENTERS , PETROL & DIESEL GAS STATIONS AUTHORISED BY PUBLIC SECTOR OIL COMPANIES , CONSUMER CO OPERATIVE STORES , MILK BOOTHS AND CREMATORIUMS WILL CONTINUE TO ACCEPT THE OLD NOTES .
LATEST NEWS ON DEMONETIZATION IN INDIA
SUPREME COURT UPHOLDS DEMONETIZATION :
Dated 02.01.2023 : On 08th, November 2016 , Prime Minister Mr Narendra Modi had announced the Government's decision to demonetize the currency notes of Rs 500 and Rs 1,000 . Then petitions were filed in the Supreme court against the ordinance issued by the Government .
Now after six years , the cases had come up before a constitutional bench of the Supreme Court . The constitutional Bench consisted of Justices S.Abdul Nazeer , B R Gavai , A S Bopanna , V Ramasubramanian and B V Nagarathana . Today Supreme court constitutional bench upheld the decision of the central government in 4-1 decision .
The central government had argued that the demonetisation was a "well-considered" decision and part of a larger strategy to combat the menace of fake money, terror financing, black money and tax evasion.
The court held that the notification which announced the decision to scrap the high-value currency notes and 52 days notice period was not unreasonable .
However Justice B.V.Nagarathna gave the dissenting decision .
Further details awaited
Dated 02.01.2023 : On 08th, November 2016 , Prime Minister Mr Narendra Modi had announced the Government's decision to demonetize the currency notes of Rs 500 and Rs 1,000 . Then petitions were filed in the Supreme court against the ordinance issued by the Government .
Now after six years , the cases had come up before a constitutional bench of the Supreme Court . The constitutional Bench consisted of Justices S.Abdul Nazeer , B R Gavai , A S Bopanna , V Ramasubramanian and B V Nagarathana . Today Supreme court constitutional bench upheld the decision of the central government in 4-1 decision .
The central government had argued that the demonetisation was a "well-considered" decision and part of a larger strategy to combat the menace of fake money, terror financing, black money and tax evasion.
The court held that the notification which announced the decision to scrap the high-value currency notes and 52 days notice period was not unreasonable .
However Justice B.V.Nagarathna gave the dissenting decision .
Further details awaited
SUPREME COURT TAKES UP CASES AGAINST DEMONETIZATION :
Dated 13.10.2022 : On 08th, November 2016 , Prime Minister Mr Narendra Modi had announced the Government's decision to demonetize the currency notes of Rs 500 and Rs 1,000 . Then petitions were filed in the Supreme court against the ordinance issued by the Government .
Now after six years , the cases have come up before a constitutional bench of the Supreme Court . The constitutional Bench consists of Justices S.Abdul Nazeer , B R Gavai , A S Bopanna , V Ramasubramanian and B V Nagarathana .
In the yesterday's hearing , Counsels for the Government of India and Reserve Bank of India sought time to file affidavits in the matter .
The case is adjourned to 8th , November 2022 .
Dated 13.10.2022 : On 08th, November 2016 , Prime Minister Mr Narendra Modi had announced the Government's decision to demonetize the currency notes of Rs 500 and Rs 1,000 . Then petitions were filed in the Supreme court against the ordinance issued by the Government .
Now after six years , the cases have come up before a constitutional bench of the Supreme Court . The constitutional Bench consists of Justices S.Abdul Nazeer , B R Gavai , A S Bopanna , V Ramasubramanian and B V Nagarathana .
In the yesterday's hearing , Counsels for the Government of India and Reserve Bank of India sought time to file affidavits in the matter .
The case is adjourned to 8th , November 2022 .
NEW STUDY SUGGESTS INDIAN GROWTH HIT BY DEMOETIZATION
Dated 24.12.2018 : A working paper authored by Ms Gita Gopinath , chief economist at IMF along with three other reputed economists suggests that growth of Indian economy was hit in the months following demonetization while it facilitated faster adoption of new technolgies like payment wallets
. The abstract of the paper says
" We analyze a unique episode in the history of monetary economics, the 2016 Indian
“demonetization.” This policy made 86% of cash in circulation illegal tender overnight, with new
notes gradually introduced over the next several months. Districts experiencing more severe demonetization had relative reductions in economic activity, faster adoption of alternative payment technologies, and lower
bank credit growth. The cross-sectional responses cumulate to a contraction in employment and
nightlights-based output due to demonetization of 2 p.p. and of bank credit of 2 p.p. in 2016Q4
relative to their counterfactual paths, effects which dissipate over the next few months. We conclude that , in modern India ,cash serves an essential role in facilitating economic activity "
The working paper is co -authored by Prachi Mishra , Chief Economist at india desk of Goldman sachs , Abhinav Narayan of Reserve Bank of India and Gabriel Chodorow - Reich , Economics Professor at Harvards . The paper is published by National Bureau of Economic Research , Cambridge .
To read the complete working paper , CLICK HERE
Dated 24.12.2018 : A working paper authored by Ms Gita Gopinath , chief economist at IMF along with three other reputed economists suggests that growth of Indian economy was hit in the months following demonetization while it facilitated faster adoption of new technolgies like payment wallets
. The abstract of the paper says
" We analyze a unique episode in the history of monetary economics, the 2016 Indian
“demonetization.” This policy made 86% of cash in circulation illegal tender overnight, with new
notes gradually introduced over the next several months. Districts experiencing more severe demonetization had relative reductions in economic activity, faster adoption of alternative payment technologies, and lower
bank credit growth. The cross-sectional responses cumulate to a contraction in employment and
nightlights-based output due to demonetization of 2 p.p. and of bank credit of 2 p.p. in 2016Q4
relative to their counterfactual paths, effects which dissipate over the next few months. We conclude that , in modern India ,cash serves an essential role in facilitating economic activity "
The working paper is co -authored by Prachi Mishra , Chief Economist at india desk of Goldman sachs , Abhinav Narayan of Reserve Bank of India and Gabriel Chodorow - Reich , Economics Professor at Harvards . The paper is published by National Bureau of Economic Research , Cambridge .
To read the complete working paper , CLICK HERE
CONFIRMED : 99.3 % OF NOTES DEMONETIZED RETURNED TO RBI
Dated 02.09.2017 : As per RBI annual report released today for the year 201-18 , it is confirmed by Reserve Bank of India now that 99 .3 % of the demonetized notes have been returned to RBI . Public have returned Rs 15, 31 lakh crores of Demonetized notes ( SBN ) out of Rs 15.44 lakh crores in circulation have been returned to Reserve Bank through banking channels during the period of 9.11.2016 to 31.03.2017 . It means that notes of value of just Rs 10,720 were not returned to the system .
Report says that the Specified Bank Notes ( SBN ) returned were verified , counted and processed using sophisticated high speed CVPS machines for genuineness and shredded and briquetted in two shifts of day and night . The report also suggests that the volume of notes increased by 2.1 % during the year .
Earlier year report for 2016-17 was used by analysts to deduce information about the position of demonetization , surrender and remonetization by Reserve Bank of India and they had expected return of 99 % of the SBN . However the present report states the actual amount of SBN returned .
For relevant portion of RBI Report , CLICK HERE
To read complete Annual report of RBI for the year 2017-18 , CLICK HERE
Dated 02.09.2017 : As per RBI annual report released today for the year 201-18 , it is confirmed by Reserve Bank of India now that 99 .3 % of the demonetized notes have been returned to RBI . Public have returned Rs 15, 31 lakh crores of Demonetized notes ( SBN ) out of Rs 15.44 lakh crores in circulation have been returned to Reserve Bank through banking channels during the period of 9.11.2016 to 31.03.2017 . It means that notes of value of just Rs 10,720 were not returned to the system .
Report says that the Specified Bank Notes ( SBN ) returned were verified , counted and processed using sophisticated high speed CVPS machines for genuineness and shredded and briquetted in two shifts of day and night . The report also suggests that the volume of notes increased by 2.1 % during the year .
Earlier year report for 2016-17 was used by analysts to deduce information about the position of demonetization , surrender and remonetization by Reserve Bank of India and they had expected return of 99 % of the SBN . However the present report states the actual amount of SBN returned .
For relevant portion of RBI Report , CLICK HERE
To read complete Annual report of RBI for the year 2017-18 , CLICK HERE
AROUND 1 % OF NOTES DEMONETIZED RS 1,000 NOTES DIDN'T RETURN TO THE SYSTEM
Dated 30.08.2017 : As per RBI annual report released today for the year 2016-17 , almost 99% of the notes demontized Rs 1,000 notes have been returned to the banking system . Public have not returned 89 million pieces of Demonetized Rs 1,000 notes which account for Rs 8,900 crores . Rs 15.28 lakh crores of demonetized notes , out of Rs 15.44 lakh crores in circulation have been returned to Reserve Bank through banking channels during the period of 9.11.2016 to 31.03.2017 .
However number of demonetized Rs 500 which were not returned could not be deduced from the data .
Further RBI has spent Rs 8,000 crores for printing new currencies during the year .
It is reported that Finance Minister Mr Arun Jaitley has told that the report suggests that effect of demonetization is extremely positive .
For relevant portion of RBI Report , CLICK HERE
To read complete Annual report of RBI for the year 2016-17 , CLICK HERE
25% INCREASE IN THE NUMBER OF IT RETURNS FILED
Dated 18.08.2017 : As per press release of Ministry of Finance dated 07.08.2017 , the number of IT returns filed this year has grown 25 % to 2,82, 95,955 from 2.26,97, 843 in the previous year and the increase has been attributed to Demonetization . Further in another press release dated 09.08.2017 , Finance Ministry has indiacted an increase of 19 % in the direct tax collection during the year up to July 1018 , compared to same period previous year .
For Press release dated 07.08.2017 , CLICK HERE For Press release dated 09.08.2017 , CLICK HERE
Dated 15.08.2017 : Prime Minister Mr Narendra Modi , on the occasion of independence day speech from the rampant of red fort , revealed that more than Rs 3 lakh crores of black money has come back to the banking system after demonetization . He also informed that 18 lakh individuals and an amount of Rs 1.75 lakh crores deposited withe banks are under scrutiny of Income tax . However he did not elaborate on the amount of old cash returned to the banks during demonetization .
Dated 30.08.2017 : As per RBI annual report released today for the year 2016-17 , almost 99% of the notes demontized Rs 1,000 notes have been returned to the banking system . Public have not returned 89 million pieces of Demonetized Rs 1,000 notes which account for Rs 8,900 crores . Rs 15.28 lakh crores of demonetized notes , out of Rs 15.44 lakh crores in circulation have been returned to Reserve Bank through banking channels during the period of 9.11.2016 to 31.03.2017 .
However number of demonetized Rs 500 which were not returned could not be deduced from the data .
Further RBI has spent Rs 8,000 crores for printing new currencies during the year .
It is reported that Finance Minister Mr Arun Jaitley has told that the report suggests that effect of demonetization is extremely positive .
For relevant portion of RBI Report , CLICK HERE
To read complete Annual report of RBI for the year 2016-17 , CLICK HERE
25% INCREASE IN THE NUMBER OF IT RETURNS FILED
Dated 18.08.2017 : As per press release of Ministry of Finance dated 07.08.2017 , the number of IT returns filed this year has grown 25 % to 2,82, 95,955 from 2.26,97, 843 in the previous year and the increase has been attributed to Demonetization . Further in another press release dated 09.08.2017 , Finance Ministry has indiacted an increase of 19 % in the direct tax collection during the year up to July 1018 , compared to same period previous year .
For Press release dated 07.08.2017 , CLICK HERE For Press release dated 09.08.2017 , CLICK HERE
Dated 15.08.2017 : Prime Minister Mr Narendra Modi , on the occasion of independence day speech from the rampant of red fort , revealed that more than Rs 3 lakh crores of black money has come back to the banking system after demonetization . He also informed that 18 lakh individuals and an amount of Rs 1.75 lakh crores deposited withe banks are under scrutiny of Income tax . However he did not elaborate on the amount of old cash returned to the banks during demonetization .
ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA ) SWIFT
WHAT IS NEW ON PLAN N PROGRESS ?
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA ) SWIFT
WHAT IS NEW ON PLAN N PROGRESS ?
GOVERNMENT DASHES HOPES OF OLD CURRENCY HOLDERS
DATED 18.07.2017 : As per newspaper reports , Government is not inclined to give one more last chance to the genuine old currency holders and informed the supreme court accordingly . Government has argued that any such window opened to public may be misused and the purpose of demonetisation might be defeated . Government may not be able distinguish between genuine and bogus holders and any number of benami transactions may take place , if one more chance is given . In support of their argument , government has cited the experience of allowing railway bookings and petrol bunk payments . One has to wait for what final decision would be taken by Supreme court .
Meantime Mr Urjit Patel , Governor of RBI has advised the Parliamentary panel that RBI is still counting old notes surrendered during demonetisation period and hence exact number of old note surrendered could not be given . He also advised that their staff is working round the clock for counting of the old notes .
Reserve bank of India is yet to release weekly data of its assets and liabilities as on 30.06.2017 , last day of its financial year and is expected only by August . Many newspapers attributed the delay to the issue of demonetised notes .
A RAY OF HOPE FOR THOSE STILL HOLDING OLD CURRENCIES
Dated 04.07.2017 : While hearing a bunch of petitions on 03.07.2017 , Supreme court asked Government of
India and Reserve Bank of India to examine whether a window could be provided for those genuine persons who could not surrender their old Rs 500 and Rs 1,000 notes earlier before the deadline of 30.12. 2016 . Government is given two weeks time to respond .
A ray of hope for all those who are still holding old notes for any genuine reasons .
DATED 18.07.2017 : As per newspaper reports , Government is not inclined to give one more last chance to the genuine old currency holders and informed the supreme court accordingly . Government has argued that any such window opened to public may be misused and the purpose of demonetisation might be defeated . Government may not be able distinguish between genuine and bogus holders and any number of benami transactions may take place , if one more chance is given . In support of their argument , government has cited the experience of allowing railway bookings and petrol bunk payments . One has to wait for what final decision would be taken by Supreme court .
Meantime Mr Urjit Patel , Governor of RBI has advised the Parliamentary panel that RBI is still counting old notes surrendered during demonetisation period and hence exact number of old note surrendered could not be given . He also advised that their staff is working round the clock for counting of the old notes .
Reserve bank of India is yet to release weekly data of its assets and liabilities as on 30.06.2017 , last day of its financial year and is expected only by August . Many newspapers attributed the delay to the issue of demonetised notes .
A RAY OF HOPE FOR THOSE STILL HOLDING OLD CURRENCIES
Dated 04.07.2017 : While hearing a bunch of petitions on 03.07.2017 , Supreme court asked Government of
India and Reserve Bank of India to examine whether a window could be provided for those genuine persons who could not surrender their old Rs 500 and Rs 1,000 notes earlier before the deadline of 30.12. 2016 . Government is given two weeks time to respond .
A ray of hope for all those who are still holding old notes for any genuine reasons .
FOR CHRONOLOGY OF RBI NOTIFICATIONS ON THE SUBJECT OF DEMONETISATION , CLICK HERE
BANKS ALLOWED TO DEPOSIT DEMONETIZED NOTES TILL JULY 20
DATED 21.06.2017 : It is reported that Banks , Post Offices and Co-operative banks can deposit now the demonetized notes collected by them earlier , with Reserve Bank of India till July 20,2017 , as per a notification issued by Government of India . However banks and post office have to furnish the reasons for not depositing them earlier . Earlier window for depositing with RBI was closed on 31st , Dec 2016 itself . Acceptance of such notes by RBI is subject to its satisfaction that the terms of government notification is met . While banks and post offices can deposit all junked notes received by them till Dec 31 , 2016 , District co-operative banks can only deposit such notes received till November 14, 2016 . DCCBs had received such notes during the period Nov10 to Nov 14 , 2016 and were requesting RBI / Government to accept the same .
RBI WILL TAKE LOT OF TIME TO COUNT OLD NOTE DEPOSITS
Dated 06.06.2017 : In an interview , Mr Arun Jaitley , Finance Minister advised that RBI would take lot of time to count old note deposits as it had to count every currency note deposited while segregating fake notes from genuine notes . " As RBI has to count notes in the range of 14 to 15 lakh crore rupees , there can be no time limit for RBI to count "
He also praised the demonetisation move as it had helped to weed out black money and corruption . He also told that it has helped digitisation of economy , lesser use of cash and changing habits of the consumers .
DATED 21.06.2017 : It is reported that Banks , Post Offices and Co-operative banks can deposit now the demonetized notes collected by them earlier , with Reserve Bank of India till July 20,2017 , as per a notification issued by Government of India . However banks and post office have to furnish the reasons for not depositing them earlier . Earlier window for depositing with RBI was closed on 31st , Dec 2016 itself . Acceptance of such notes by RBI is subject to its satisfaction that the terms of government notification is met . While banks and post offices can deposit all junked notes received by them till Dec 31 , 2016 , District co-operative banks can only deposit such notes received till November 14, 2016 . DCCBs had received such notes during the period Nov10 to Nov 14 , 2016 and were requesting RBI / Government to accept the same .
RBI WILL TAKE LOT OF TIME TO COUNT OLD NOTE DEPOSITS
Dated 06.06.2017 : In an interview , Mr Arun Jaitley , Finance Minister advised that RBI would take lot of time to count old note deposits as it had to count every currency note deposited while segregating fake notes from genuine notes . " As RBI has to count notes in the range of 14 to 15 lakh crore rupees , there can be no time limit for RBI to count "
He also praised the demonetisation move as it had helped to weed out black money and corruption . He also told that it has helped digitisation of economy , lesser use of cash and changing habits of the consumers .
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GDP GROWTH RATE SLUMPS TO 6.1 % IN THE QUARTER FOLLOWING DEMONETISATION
Dated 01.06.2017 : The Gross Domestic Product ( GDP ) growth rate has slumped to 6.1% in the last quarter of financial year 2016-17 , compared to 7.0% in the last year for the same period . Some economists have directly linked to the slower growth to demonetisation of currencies announced by Prime minister on 08.11.2016 .
Overall GDP Growth for the financial year 2016-17 was pegged to 7.1% from 8% in the earlier year .
Further as per data released by Central statistical organisation ( CSO ) , The GVA ( Gross value Added ) rate slumped to 6.7 % and 5.6% in the third and fourth quarters of the year from 7.3% and 8.6 % in the corresponding period last year . The slowdown is also attributed to demonetisation by economists . Mr Aravind Subramaniam , Chief Economic Advisor to Government of India , however described it as " Temporary shock " and economy can grow better in the present year due to good monsoon expected .
Dated 13.03.2017 : As per earlier RBI Notification dated 08.02.2017 , all restrictions on cash withdrawal limits from banks and ATMs have been removed effective from 13.03.2017 . Henceforth public can transact their cash transactions as before Demonetisation . However some banks like Axis Bank , ICICI , HDFC ETC have started levying cash transactions beyond 4 transactions a month. They charge Rs 5 /- per Rs 1000/- cash transaction with a minimum of Rs 150/- per month . Further some banks have put a limit of RS 50000/- per day for third party payments .
Dated 02.03.20217 : Government of India has notified a new law that makes holding of more than 10 of scrapped notes by individuals or holding of more than 25 pieces for study , research and for purpose of numismatics punishable with a fine of Rs 10,000. The law also fines a minimum amount of Rs 50,000 for false declarations from persons who were abroad during demonetisation period and exchanged notes after that .
Dated 08.02.20217 : Today Reserve Bank of India announced enhancement of cash withdrawal limits for Savings Bank accounts to Rs 50,000 per week from the existing limit of Rs 24,000 per week effective from Feb 20 , 2017 . Further it announced that the cash withdrawal limits would be totally withdrawn with effect from March 13 , 2017 .
For RBI Notification , Click HERE
Dated 30.01.20217 : Today Reserve Bank of India announced removal of cash withdrawal limits for Current accounts , Cash credits and Overdraft accounts with immediate effect . Further cash withdrawal limits in ATMs are also withdrawn with effect from 01 Feb 2017 .
For RBI Notification , Click HERE
Dated 16.01.20217 : Today Reserve Bank of India enhanced ATM cash withdrawal limit to Rs 10,000 per day from the existing Rs 4, 500 per day , but within the overall cash withdrawal limit of Rs 24,000 per week for the savings bank account holders . However for current accounts , cash credits and overdraft account holders , cash withdrawal limit is enhanced to Rs 100,000 per week from the existing Rs 50,000 per week . The relaxation comes with immediate effect .
For RBI Notification , Click HERE
WHO IS ADVISOR TO WHOM ?
Dated 10.01.20217 : Traditionally Reserve Bank of India is known to be Advisor to Government of India in matters related to finance , banking and money . But as per note submitted by RBI to Committee of Finance of Parliament ,as reported by Newspapers , it was a reversal of role and Government of India had " advised " RBI on 7th November 2016 to recommend to itself demonetisation of Rs 500 and Rs 1000 notes . RBI obliged the advice by calling a special meeting of its board on 8th November itself and sending its recommendation . Rest is history .
Dated 05.01.20217 : Newspapers reported from unknown sources that Rs 14.97 lakhs crores out of demonetised Rs 15.4 lakhs crores have been deposited to the banking system till 30.12.2016 . The amount represents about 97 % of the total demonetised notes issued . However RBI is yet to come with official figures . We understand that RBI is double checking for the correctness of the figures they have got before publishing .
Dated 05.01.20217 : Nikkei India Services Purchasing Managers' Index and and Nikkei India composite PMI Output Index for the month of December sttod at 46.8.and 47.6 respectively showing a contraction in Services and Manufacturing Sectors in india . The observers linked the contaction to the demonetisation move taken out by the government .
( A reading above 50 shows expansion of activities while a reading below 50 shows contraction )
Dated 03.01.20217 : RBI has extended cash withdrawal limit of Rs 5,000 per week to Foreign citizens visiting India up to January 31, 2017 from the existing December 31, 2016
Dated 31.12.20216 : It is reported that President has signed an ordinance regularising the demonetisation move taken by the government on 08.11.2016 . It is reported by media that following changes are made to earlier notification .
1. Indian Residents who were outside India during November 9, 2016 and December 30 , 2016 and who had not deposited demonetised notes during the period can deposit old notes till 31.03.2017 in specified RBI offices at Mumbai , Chennai , New Delhi , Kolkata and Nagpur
3. Non- Resident Indians who were outside India during November 9, 2016 and December 30 , 2016 and who had not deposited demonetised notes during the period can deposit old notes till 30.06.2017 in specified RBI offices at Mumbai , Chennai , New Delhi , Kolkata and Nagpur .
In this regard RBI has issued a notification and to view th notification , CLICK HERE
As per the ordinanace , No person shall hold more than 10 notes in total or not more than 25 notes for the purpose of study / research / numismatics after December 31, 2016 . Holding of demonetised notes will be a crime , attracting penalty of
Rs 10 ,000 or 5 times the value held whichever is higher .
Dated 31.12.20216 : Reserve bank of India today relaxed ATM withdrawal limit to Rs 4500 per day per card from the existing Rs 2500 per day per card . The relaxation comes in to effect from 01.01.2017 . RBI has also directed banks to allow such withdrawals predominantly in Rs 500 notes .
For RBI notification , Click HERE
In another move RBI extended timeline to load up to Rs 20,000 in mobile wallet toll it completes review of guidelines for issue of PPI instruments .
Earlier on 28.12.2016 The RBI had extended additional repayment period of 60 days offered to small borrowers up to 60 days by another 30 days making it total of 90 days . Now borrower up to Rs 1 crore get additional repayment period of 90 days total for their Housing , Car , Agriculture or any other loans and banks need not classify such delayed payments as NPAs
For RBI notification , Click HERE
REMINDER TO READERS DATED 28.12.2016 : TWO DAYS ARE LEFT FOR YOU TO DEPOSIT YOUR DEMONETISED NOTES TO YOUR BANK ACCOUNTS . AFTER 30.12.2016 , YOU WILL NOT BE ABLE TO DEPOSIT IN YOUR ACCOUNT AND YOU HAVE TO APPROACH RBI WITH RELEVANT DETAILS . TO AVOID HASSLES ,CHECK YOUR WALLETS , USED PURSES / HANDBAGS , USUAL STORAGE PLACES / UNUSUAL PLACES FOR ANY PIECE OF SUCH NOTES AND DEPOSIT THEM IN NEXT TWO DAYS . DO NOT REGRET AFTER THE GIVEN PERIOD
Dated 21.12.20216 : Reserve bank of India today modified the earlier notification dated 19.12.2016 regarding deposit of old notes . Now as per modification . One who has KYC compliant account can deposit more than once and no questioning by Bank officials . The bifurcation of above Rs 5000 and below Rs 5000 has been done way with . However restrictions on Non KYC compliant accounts will continue . Any how last date for remittance of old notes continues to be 30.12.2016
For RBI notification , Click HERE
Dated 19.12.20216 : Reserve Bank of India put fresh restrictions on depositing old Rs 500 and Rs 1000 notes in to bank accounts effective from today . Key restrictions are .
1. Total deposit of more than Rs 5000 will be ONLY ONCE received in to bank accounts in the remaining period ending December , 30 . 2016 . the credit in such cases will be done only on ascertaining the reason why this could not be credited earlier and after receiving a satisfactory explanation . Explanation will be recordedin the presence of two bank officials .
2. Amount less than Rs 5000 can be deposited in normal way till 30th Dec 2016 . However if cumulative amount exceeds rs 5000 , the process of receiving such notes will be same as that for amounts exceeding Rs 5000
3. Excess above Rs 5000 can be credited only to KYC compliant accounts . In other accounts only up to Rs 50000 can be credited
To view detailed RBI notification , CLICK HERE
Dated 15.12.20216 : Today is the last day to utilise old Rs 500 notes in any of the exempted category services like LPG , Govt hospitals , Pharmacies , milk booths , Taxes , Utility bills etc . From tomorrow till 30th december 2016 , Old Rs 500 and Rs 1000 notes can only be deposited in a bank account .
Dated 08.12.2016 : Government today cut short the deadline for using old Rs 500 notes for purchase of
Rail and Bus tickets . Old Rs 500 notes cannot be used from 10th Dec 16 for such purchases . The earlier deadline owas
15th Dec 16 . Old Rs 500 notes cannot also be used for availing services from railway catering service from 10.12.2016 . However other exemptions for LPG , Govt hospitals , Pharmacies etc will continue till 15th Dec 16 .
Dated 07.12.2016 : RBI SAYS AN AMOUNT TOTALING AROUND 11.5 LAKH CRORES RUPEES OF OLD NOTES HAVE COME BACK TO RBI TILL DATE ALREADY .
Dated 06.12.2016 : RBI said that they will issue new currency notes of Rs 100 WITH NUMERALS IN ASCENDING ORDER and without inset letters in both the number panels . The old notes of Rs 100 will continue to be legal tender . The design of new notes of new bank notes will be similar to that of old notes ,but with enlarged identification features and ascending size of numerals in number panels , bleed lines and enlarged identification mark on the obverse . . New notes will carry signature of RBI Governor Mr Urjit Patel .
Dated 05.12.2016 : RBI said that they will issue new currency notes of Rs 20 and Rs 50 WITH NUMERALS IN ASCENDING ORDER in the number panels without intaglio printing . The old notes of Rs 20 and Rs 50 will continue to be legal tender . The design and features of new bank notes will continue be that of old notes . The Rs 20 new notes will have inset letter L in both number panels . New notes will carry signature of RBI Governor Mr Urjit Patel .
It is hoped that augmentation of lower denominated notes will help in mitigating the problems faced by public in carrying low value cash transaction
Dated 01.12.2016 :
Government today cut short the deadline for using old Rs 500 notes for Fuel , Air tickets and Toll fees to till December 2nd instead of earlier time limit up to 15.12.2016 . From 3.12.2016 , Old Rs 500 notes can not be used for purchase of petrol , diesel etc from PSU petrol bunks and cannot be used for buying air tickets t the air port . It is reported that old notes can not be used at Toll gates after 02.12.2016 , if payments are less than Rs 200 . However old Rs 500 notes can be continued to be used till 15.12.2016 for purchase of rail tickets and bus tickets of PSU .
Dated 29.11.2016 :
Reserve Bank of India , has asked branch managers of banks to allow Rs 10,000 per month in the KYC compliant accounts of PMJDY funded by deposits of demonetised notes . The branch managers have been allowed to allow higher amounts beyond Rs 10,000 , but within the present applicable limits after ascertaining the genuineness of such withdrawals. The Non KYC compliant account holders may be permitted to draw only Rs 5,000 .
This step has been taken by RBI with a view to protect the innocent farmers and rural account holders of PMJDY from the activities pf money launderes and legal consequences of Benami Transactions Act
To view RBI notification , CLICK HERE
Lok Sabha has passed a bill under the name of " Pradhan Mantri Garib Kalyan Yojna " , for allowing the people to declare their unaccounted cash and pay taxes . Under the scheme , declarations can be made till 30th Dec 2016 and pay taxes around 50 % of the declared amount . 25% of the declared amount will be parked in a government fund for a period of 4 years at 0% interest . Balance 25 % will be available for use of the depositors. For unaccounted cash , not declared under the scheme , taxes and penalty may go up to 85 % .
Dated 28.11.2016 : Relaxation of cash withdrawal Rules by RBI
Reserve Bank of India , keeping in view of the hesitancy of public in depositing monies in to their account and impediment it is causing in to circulation of notes , has decided to allow banks to withdraw amount equivalent to cash deposits made in the legal tenders on or after 29.11.2016 . It is in addition to existing cash withdrawal limits of Rs 24,000 per week in the personal SB accounts and other existing limits in other accounts . Such withdrawals will be available in Rs 2000 and Rs 500 new notes .
To view RBI notification , CLICK HERE
Dated 26.11.2016 : RBI has advised banks that they might continue to allow withdrawal of cash from their KYC compliant existing customers to a maximum extent of Rs 24,000 per week till further instructions . The limit includes withdrawal from ATMs also .
To view RBI notification , CLICK HERE
DATED 24.11.2016
1. The government has stopped exchange of old Rs 500 and Rs 1,000 notes from the midnight of 24.11.2016 in all bank and post offices
( As per clarification dated 25.11.2016 , exchange can be done at offices of RBI )
2. Old note of Rs 1,000 can only be credited a bank / post office account and no other transaction can be carried out using those notes .
3. Old Rs 500 notes can be used in the following places till midnight of 15th , December , 2016
1. Top up of Pre -paid mobiles up to Rs 500 per Top-up.
2. Purchases from consumer co-operative stores up to Rs 5000 per transaction
3. Payment of Fees in Govt colleges
4. Exchange of foreign currency up to Rs 5000 per week for Foreign Nationals
5. Payment of current and past bills of water and Electricity bills
6. Payment at Toll plazas from 3.12.2016 to 5.12.2016
7. Payment of school fees up to Rs 2000 per student in central , state . municipal or local body schools
8. Government hospitals
9 . Railway tickets
10. Public transport
11. Airline tickets at Air ports
12. Milk booths
13. Crematoria/ burial grounds
14. Petrol Pumps
15. Metro Rail tickets
16. Pharmacies for medicines prescribed by doctors
17.LPG Gas cylinders
18. Entry tickets at ASI Monuments .
19. Railway catering
20. Taxes and penalties to govt bodies
21. Court Fees
22. Seeds at State outlets
DATED 22.11.2016 :
1. In view of liquidity crunch , RBI relaxed the rule for classifying as NPA ( Non performing assets ) . Now borrower up to Rs 1 crore get additional repayment period of 60 days for their Housing , Car , Agriculture or any other loans and banks need not classify such delayed payments as NPAs
2. RBI HAS NOW ALLOWED CASH WITHDRAWAL UP TO RS 50,000 FOR OVERDRAFT / CASH CREDIT ACCOUNTS
3. BIGBAZAAR has tied up with State Bank of India and enabled ,through Mini - ATMs in their outlets , cash withdrawal of Rs 2000 from their Debit Cards from 24.11. 2016 .
4 . Income Tax Dept has threatened that they would take action under recently passed Benami Transaction Act against people depositing old demonitised currency notes obtained from black currency holders . The violators can be slapped with Penalty, prosecution and jail term .
Dated 21.11.2016 : IT Department has issued a notification making quoting of PAN mandatory for cash remittance to a bank / post office exceeding Rs 50,000 in a day and cash transactions exceeding Rs 2,50,000 remitted during the period of 9.11.2016 to 30.12.2016 . If a person is not having PAN Number , he / she has to submit Form 60 , giving their in particulars of transactions .
To access the notification , CLICK HERE and to read relevant Rule 114b , CLICK HERE and type 114B in Rule column
In case one is not having PAN Number , he /she has to submit Form 60 to the bank/ post office
CLICK HERE to download Form 60
DATED 18.11.2016 : NEW GUIDELINES ON DEMONETIZATION
1. NO CURRENCY EXCHANGE ON 19.11.2016 EXCEPT FOR BANK'S OWN CUSTOMERS AND SENIOR CITIZENS .
2. CURRENCY EXCHANGE LIMIT REDUCED TO RS 2000 FROM RS 4500
3. FARMERS CAN WITHDRAW RS 25000 PER WEEK FROM THEIR KYC COMPLIANT ACCOUNTS
4. TRADERS REGISTERED WITH APMC / MANDI CAN DRAW RS 50000 PER WEEK FROM THEIR KYC COMPLIANT ACCOUNTS
5 . RS 2.50 LAKHS CAN BE DRAWN FROM ONE OF THE FAMILY MEMBERS OF A FAMILY FOR WEDDING PURPOSES SUBJECT TO TERMS AND CONDITIONS
6. CENTRAL GOVT EMPLOYEES UP TO GROUP C CAN DRAW RS 10,000 IN ADVANCE FOR THEIR SALARY
NEWS ALERT DATED 14.11.2016 :GOVT HOSPITALS , RAILWAY , AIR AND GOVT BUS BOOKING CENTERS , PETROL & DIESEL GAS STATIONS AUTHORISED BY PUBLIC SECTOR OIL COMPANIES , CONSUMER CO OPERATIVE STORES , MILK BOOTHS AND CREMATORIUMS WILL CONTINUE TO ACCEPT THE OLD NOTES TILL 24.11.2016
NEWS ALERT DATED 14.11.2016 : GOVT HAS SINCE REVISED CURRENCY EXCHANGE LIMIT TO RS 4500 FROM EXISTING RS 4000. WITHDRAWAL LIMIT FROM ATMS HAS SINCE BEEN RAISED TO RS 2500 FROM RS 2000. WEEKLY CASH WITHDRAWAL LIMIT FROM ACCOUNTS OF BANKS HAS BEEN RAISED TO RS 24000 FROM RS 20000 , DOING AWAY WITH DAILY WITHDRAWAL LIMITS
NEWS ALERT DATED 10.11.2016 :GOVT HOSPITALS , RAILWAY , AIR AND GOVT BUS BOOKING CENTERS , PETROL & DIESEL GAS STATIONS AUTHORISED BY PUBLIC SECTOR OIL COMPANIES , CONSUMER CO OPERATIVE STORES , MILK BOOTHS AND CREMATORIUMS WILL CONTINUE TO ACCEPT THE OLD NOTES TILL 14.11.2016
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