The sudden move by the government to demonetize 500 and 1,000 rupees notes has induced panic among the civilians. It promises to bring great benefits, but in the long run. The present situation is no less than chaotic for the public. People have a number of questions in mind but the priority questions need to be answered first.
The first question troubling most people is what should they do with their cash in hand? If you have some cash stashed with you in the denominations of 500 and 1,000 then you must know that it’s no more valuable. So your first move should be to exchange your notes at authorized points.
This brings us to the next important question, where can you exchange your liquid money? The obvious answer is banks but to ease the process and handle the rush, not only the banks but even post offices have been authorized to take care of the exchange process. We know that you are in a rush but hold your horses! Before you rush to a nearby bank with a bag full of cash, you should know that government has imposed a limit on the amount you can exchange at one go.
From 10th November to 24th November, you cannot exchange more than Rs. 4,000 in a day. The upper limit was revised on Sunday. Now you can exchange up to Rs. 4,500 per week over the counter. The exchange limit has again been revised and stands at Rs. 2,000 per day. However, post 24th November and till 30th December, you can exchange your old notes without any upper limit.
Here you also have another option here. Instead of opting to exchange your old notes with new ones, you can simply deposit them to your account. Government has set no upper limit for this.
Now you must be thinking, do I need any documents or can I simply go and exchange or deposit cash? The answer is that you do need to carry some documents whether you are going to exchange money or deposit it to your bank account. If you want to exchange your old notes, then don’t forget to carry your identity proof like Aadhaar card, ration card or passport along with your PAN card. If you wish to deposit cash to your account, then you also need to carry a signed declaration form stating that the money to be deposited is your income.
What if I want to withdraw money? Will I get new notes? How much can I withdraw? No need to be hysterical. All these questions are answered here. Cash can be obtained not only from ATMs and banks but also post offices.
Government has imposed a maximum withdrawal limit of Rs. 10,000 per day and Rs. 20,000 per week when withdrawing from banks and post offices. Government has removed the maximum withdrawal limit and raised the weekly withdrawal limit to Rs. 24,000 per week for general public. However, farmers will be able to withdraw up to 25,000 rupees per week against their crop loans. The maximum withdrawal limit is much lower when withdrawing money from ATMs. You cannot withdraw more than Rs. 2,000 Rs. 2,500 a day per card from an ATM till 18th November. You may not get the new Rs. 2,000 notes immediately as ATMs need to be reconfigured to hold such notes.
Those of you who don’t have any cash in hand must be feeling relieved but do not think that demonetization is not going to have a big impact on your lives. The days of paper cash are numbered, so it is advisable to switch to plastic money and other online mediums of exchange like net banking and m-banking. Once you get used to these modes, you will certainly find them way more convenient.
Stay tuned to get all your questions answered on the issue of demonetization.