Rs 500, Rs 1000 Notes are no Longer Legal Tender: What You Need to Know and Do?

Keep calm: you have 50 days time to exchange / deposit your old notes in banks / post office and lower denomination notes and coins will remain legal tender.

2. Emergency requirements have been taken care of.

Some leeway has been given by the government for use of these notes for medical emergencies etc. For first 72 hours from Nov 8 midnight i.e. till 11 Nov midnight government hospitals will accept these old notes, pharmacies in government hospitals will accept these notes with Doctor’s prescription. Old notes will be accepted for railway ticket booking and air travel booking for the first 72 hours.

Additionally, For 72 hours old notes will be accepted at petrol , diesel and CNG stations authorised by public sector companies, milk booths, crematoriums, and government co-operative stores.

International airports will make arrangements for arriving passengers to exchange up to Rs 5000 worth of old notes for the new legal tender.

No restriction on electronic fund payments or transfers including credit and debit cards

3. Collect all the currency kept in various places: (i) Wallets (ii) In the house –drawers/safes. (iii) From your lockers in bank if any are kept there. Collecting from bank would be possible after banks open for public dealing as banks will be closed for public dealing on November 9, 2016.

4. Separate and take out the Rs 500 and Rs 1000 notes from these. Count and write down the total. Ideally make bundles of 50, 100 and a few bundles totalling to the amount that is allowed to be exchanged in the initial days.

5. Prepare for long queues at banks and post offices from Nov 10 onwards. From November 10 to 24 old notes upto Rs 4000 in value can be exchanged. After Nov 25 this limit will be raised. You need to take your ID cards along.

6. Old notes can be deposited in banks or post offices from Nov 10 to Dec 30 till close of banking hours.

7. Withdrawal of new notes will be limited to Rs 10,000 per day and Rs 20,000 per week initially so use your credit/debit card to shop.

8. If you don’t manage to deposit all your old notes by Dec 30 you still have a window. You can exchange old notes at designated offices of the RBI after submitting a declaration form and showing your ID card up to 31.3.2017.

9. Keep a list of the serial numbers of the notes submitted /exchanged at banks as the RBI has announced that the accepting bank/post offices will keep track of these. Quite clearly the income tax department will be taking a look at who is submitting how much so exchange only the amount you are willing to explain to the tax department.