Exchange of old Rs 500, Rs 1000 notes to continue at RBI counters

Exchange of old Rs 500 and Rs 1000 currency notes, stopped at banks from Thursday midnight, will be allowed at the Reserve Bank of India (RBI) counters, a statement released on Friday by the central bank said.

“The Reserve Bank of India advises members of public that exchange of banknotes in Rs 500 and Rs 1,000 denominations, whose legal tender status has been withdrawn, will continue to be available at the counters of the Reserve Bank up to the current limits per person as hitherto,” the statement said.

The government had announced on Thursday that the demonetised 500 and 1,000 rupee notes can no longer be exchanged at bank counters and any holdings will necessarily have to be deposited in bank accounts.

No changes were announced regarding the deposit of these high value notes in banks accounts, deadline for which remains December 30. People will need to furnish their PAN card details if the total deposit amounts to over Rs 2.5 lakh after December 30.

In a shock announcement on November 8, Prime Minister Narendra Modi said that Rs 500 and 1,000 banknotes were being withdrawn from circulation in a bid to crack down on corruption and counterfeit currency .

However, a string of measures were deployed to mitigate public inconveniences resulting from the ban on the two high-value banknotes, which account for 86% of the currency in circulation in the country.

People are allowed to make ATM cash withdrawals up to Rs 2,500 per day and Rs 2,000 from select fuel pumps of state-owned oil companies. A savings account holder can withdraw up to Rs 24,000 per week from banks. Current account holders can also withdraw up to Rs 50,000 a week, provided it has been in operation for at least three months.

Read| Over the counter exchange ends: Here’s where you can use old Rs 500 notes