Banks, post offices are going to work overtime to exchange Rs 500, Rs 1000 notes

Prime Minister Narendra Modi declared the Rs 500 and Rs 1000 invalid and it caused a nationwide panic as people don’t have any idea what to do with the notes they have with them. To make it easier, banks will be opening additional counters and work extra hour so as to help people to exchange the invalid notes.

RBI could anticipate the huge rush at the bank counters and has sup control rooms in Mumbai and Delhi to avoid any crisis, Department of Economic Affairs Secretary Shaktikanta Das said.

Banks will remain shut tomorrow to allow stocking of smaller currency notes and public will be allowed to tender their now invalid Rs 500 and Rs 1000 from November 10.

However, people can deposit any amount of the invalid currency in the banks till December 30th and can exchange them for lower ones at special counters at banks and post offices till November 24th. The limit however, to change the invalid currency for lower ones is Rs 4,000 per day.

Any unusual transaction will be reported to Financial Intelligence Unit and tax authorities for scrutiny, by the banks.

RBI Governor Urjit Patel said the central bank had ramped up production of the new higher security currency notes of Rs 500 and Rs 2,000 that will replace the notes being taken out of circulation.

The cash withdrawal limit has been set to Rs 2000 per day from ATMs and Rs 10,000 from the accounts.

The cash withdrawal limits will be relaxed gradually as small currency denomination notes are adequately stocked with banks and ATMs and new currency notes come into wide circulation.

"All the banks (and) post offices will open additional counters and we have requested the banks to have extended hours for transactions...ample time will be available for the public (to exchange notes)," Das said.
(image: IndiaTimes)