Nov 082016
 

Last date to deposit or exchange Old Rs 500 and 1000 Notes |How to Deposit and Exchange Old rs 500 and Rs 100 Notes | Old Rs 500 and 1000 Deposit and Exchange Form

Well, the increased currency is presently a burning issue right now. Few days ago there was the news of introduction of 2000 rupee note in India. But finally that idea was banned in India. And that has resulted in a major question whether the 500 and 1000 rupee notes will exist in India. And the answer to this question is, these 500 and 1000 rupee notes will be discontinued. Now, we know you are looking for answers why the notes are going to be banned? The reasons are as follows:

New Rs 500 Note and New Rs 2000 Notes

Increased restriction is a primary reason. For instance, you will have to show your PAN card number while depositing more than Rs 50000 in cash in any bank. And because of this, the black money stays out of reach of banks. Previously, the co-operative banks were the safe haven for tax evasion. Because there was no TDS deduction. But now they deduct TDS from every individual. You will also have to show your PAN if your cumulative deposit is more then rs 50,000.

The second reason is, if the high demolition notes are withdrawn it will also reduce the generation of black money in future. Because, it will become difficult for anti socials to deal in cash, especially for the large deals that are done in crores. Smuggling of currency notes from outside India will also become difficult. This is really important for our national security because the terrorist organizations make use of the black money for financing. And these deals with black money are done on high demolition notes for financing.

The European Central Bank has already banned the printing of 500 Euro notes. And those notes have been already banned in the name of Bin Laden notes because of its association with terrorist funding. The currency notes leave no trail and offer anonymity and this is why the step has been implemented right now. From today midnight, the 500 and 1000 rupee notes will be banned.

Process to Depsit Exchange Rs 500 and Rs 100 Notes

The Good news is you can deposit your old notes in banks and post office in you have account with them. You can deposit you hard earned money till 30th Dec 2016 in banks and post office. If you miss this window then you still have the time to deposit your money in RBI till 31st March 2017. Exchange of Old notes can be done till 24th November only with a daily limit of rs 4000.

So if you wish to deposit your money within time then you will have to fill the form shown below. In which you will have to fill the Bank Name , Bank Branch and your details like account Number and total number of old notes that you want to deposit.  You can Use this form in All Government banks Like SBI, PNB etc and all Private banks like ICICI, HDFC etc.

deposit exchange form old rs 500 1000 notes

You can take a print out of this form and it will solve your purpose. The exchange Limit has been set as Rs 4000  for old Notes this seems to mainly done for people who do dot have bank accounts. In any case you will have to carry a photo copy of your ID prof with you.  All the process will be video recorded so it is advised not to deposit anybody elses money in your account as it would lank you in some legal trouble.

Documents Required for Deposit or Exchange of Old Rs 500 and 1000 Notes.

  • Photo copy of ID Prof Like (Aadhar Card, MNREGA card, PAN Card, etc)
  • Dully filled Deposit form

It has been also declared that you can deposit any amount of money in your account in the time frame given but if you are not able to tell the source of such income then he/she would be penalized as per land of law.

Bank and ATM withdrawal Limit

After banning old notes there has been a withdrawn limit in cash withdrawal. This has been done for initial days only due to lack of supply of new notes.  The maximum amount that you can take from bank is rs 24,000 weekly. From ATM you can withdraw only rs 2500 daily.  Last date to exchange old 500 and 1000 notes is 24th November 2016.

Drawbacks of Depositing Old Money in banks and Post office

You may have to stand in line for some time as there are a large number of people doing so in banks. You should have a legal record of all the money that you are depositing. Income Tax department is keeping all their eyes on all these deposits. If they your deposit amount does not tally with your earning then you will be penalized or even jailed. So if you have a black money in hand either you have to destroy them or face legal trouble.

How will Indian People benefit from this move

If the initial hiccups are ignored then there are only positives coming out of banning old notes. Some of these benefits are listed below

  • Most of the black money would be wiped off
  • People in future will be scared to hold black money as this move could be repeated in future
  • All the transactions that were happening in black will now be forced to do legal transactions and this will increase Indias GDP
  • Fake currency would be removed from Main market.
  • Funding of cross border terrorism will be impacted.
  • As GDP will increase then Rs is going to be stronger.

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