Scrapping of Rs 500 and Rs 1000 notes: All you need to know


The Indian Prime Minister just announced that the Reserve Bank of India has decided to ban the existing Rs. 500 and Rs. 1,000 notes. This is the latest step in the government’s crusade against black money. Here’s all you need to know about it!

What just happened to your Rs. 500 and Rs. 1000 notes?

  • Starting November 8 midnight, Rs. 500 and Rs. 1,000 notes will no longer be valid for any transactions i.e. anyone who accepts these notes will be doing so at their own ‘risk'.
  • New Rs. 500 and Rs. 2,000 notes will be introduced on November 10. They will be available for exchange in all public and private banks and post offices.
  • All other notes, coins and cashless transactions, such as cheques, cards, demand drafts and electronic transfers. will continue as usual.
  • Banks will remain closed on November 9.
  • ATMs throughout the country will also be closed on November 9, and in parts of the country on November 10 too.
  • For the first few days after ATMs start working, there will be a withdrawal limit of Rs. 2,000 per card per day. This will be raised to Rs. 4,000 later. After November 24, this will be reviewed again.

How much can you deposit in your bank account?

  • Rs. 500 and Rs. 1,000 notes upto any amount can be deposited in your bank or post office account from November 10 to December 30.
  • You will need to provide valid identification such as a passport, PAN card or Aadhaar card.

How much can you exchange?

  • Rs. 500 and Rs. 1,000 notes can be exchanged upto a limit of Rs. 4000 per day from banks and post offices till November 24. This limit will be revised upwards after November 24.
  • You will need to provide valid identification such as a passport, PAN card or Aadhaar card.

How much can you withdraw?

  • Withdrawals from banks and post offices will be restricted to a limit of Rs.10,000 per day and Rs. 20,000 in a week from November 10 to November 24. Post, November 24, this will be reviewed by the government.
  • Withdrawals from ATMs will be restricted to a limit of Rs. 2,000 per day per card from November 10 to November 18. The limit will be raised to Rs. 4,000 per day per card from November 19, 2016 onwards.

Where can you still use your Rs. 500 and Rs. 1000 notes and till when?

The Rs. 500 and Rs. 1,000 notes will be accepted at some locations till midnight on November 11. These are:

  • Petrol, diesel and CNG stations
  • Hospitals and Government pharmacies
  • Government bus stations, railway ticket counters. and airports
  • Crematoria and burial grounds
  • Milk booths and government run grocery stores like Safal
  • Government-run consumer co-operative stores

Prime Minister's Address: https://www.youtube.com/watch?v=b1FQq2ed0q8

RBI Press Conference: https://www.youtube.com/watch?v=0EHj7sK2-DY

Finance Ministry's Press Release

RBI's FAQ on the decision: https://rbi.org.in/Scripts/FAQView.aspx?Id=119