Over-The-Counter Exchange of Old Notes Only in RBI, No Other Bank

The limit of over-the-counter exchange was to increase after 25 November. However, the RBI shut it down completely.

An Indian counts currency notes of 1,000 and 500 denomination in New Delhi. (Photo: AP)

The Reserve Bank of India (RBI), in a notification on Thursday, said that over-the-counter exchange facility for invalid Rs 500 and Rs 1,000 will no longer be available from Friday, 25 November.

“On a review it has since been decided that no over-the-counter exchange (in cash) of SBNs (Rs 500 and Rs 1,000) will be permitted after midnight of 24 November 2016,” it said.

On Friday morning, however, RBI announced that the currency can be exchanged directly from the apex bank, but no other bank n the country.

Instead of Promised Increase in Note Exchange Limit, Govt Virtually Shut it Down

The RBI notification is contrary to Prime Minister Narendra Modi’s address on 8 November, when had said that the limit on exchanging old notes would be increased from Rs 4,000 on 25 November.

“From 10 November till 24 November the limit for such exchange will be four thousand rupees. From 25 November till 30 December, the limit will be increased,” Modi had said in the 8 November statement.

However, banks are no longer equipped to exchange the old currency notes.

RBI also said that all the exemptions, with the additions and modifications as, will be continued for a further period from the midnight of 24 November 2016 up to 15 December 2016.

Banks have been asked to encourage the public, who approach them for over-the-counter exchange of such currency, to deposit the notes into their bank accounts.

(Photo: The Quint)

(With PTI inputs)