After about fifteen days of the Demonetisation process, the Government finally announced some measures on an operational level so that there is clarity about the usage of the old versus new notes – as also the exchange of the notes. Significantly, the following are noteworthy points:
- There will be no over the counter exchange of the old notes of Rs 500 and Rs 1000 now, post midnight November 24, 2016.
- From November 25, you can only deposit the old notes in their accounts and then withdraw new currency through ATMs or cheques at banks.
- The government intends encouraging people who currently do not have accounts to open them and deposit the abolished notes.
- There will still be a limit of Rs 24000 per week withdrawal per bank account
- ATMs can be used to draw up to Rs. 2,500 a day per card.
- The RBI has doubled the limit on digital transactions through e-wallets like Paytm to Rs. 20,000 per month.
- Meanwhile, in Nepal people are already having problems exchanging Indian currency old notes. Now, the government has declared that the new Indian notes stand banned in the country
- The government of Nepal will wait for a declaration by the RBI under the FEMA Act. This move has been introduced because Nepal claims its incompetence to judge about counterfeit currency
- Certain exemptions granted for a further period till December 16, 2016, with the following guidelines:
- All payments to be acceptable for the exempted categories only in old Rs 500 notes
- Payments of up to Rs 2000 can be done per student in all Central Government, State Government, Municipality and local body schools too
- Payment of fees in Central and State colleges
- Pre Paid mobiles can be paid up to a limit of Rs 500 per top up
- While one can buy goods from Consumer Cooperative Stores, the limit would be Rs 5000 at a time only
- In Utilities, only water and electricity are allowed to be paid with these notes
- The toll free arrangements on roads were extended till December 2, 2016. For the next ten days or so till December 15, old notes can be used to make payments
- For Foreign citizens, the rule is that they will be permitted to exchange foreign currency up to Rs 5000 per week. However, now entries will be made in their passports. The RBI proposes to issue further guidelines regarding this.
Notifications and updates are coming in daily. While we are trying our best to bring you the most accurate and updated Information on this subject it is a possibility that by the time we relay the information it might have been changed. Please verify from the official site of RBI before taking any action (https://www.rbi.org.in/).