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Attest your ID proof, carry more than 1 card: What you should do at ATMs, banks today


There are chances that unassigned PAN and ID proof copies may be circulated and photocopied several times.

Attest your ID proof, carry more than 1 card

Bank officials have said only Rs 100 notes would be filled into ATM machines since the new Rs 500 and Rs 2,000 notes have a different size, incompatible with the cash trays; the machines would have to be reconfigured before these new notes can be brought in. While shutters were up in several ATMs, lack of cash led to customers scurrying from one ATM to another in search of which one of them had cash.

Here are 10 things to know if you are at the bank and waiting in line to get your notes exchanged

1. ATMs are not giving you new notes today. It will only dispense Rs 100 notes, some will have Rs 50 notes. A lot of the ATMs have already run out of cash. Full-fledged operations will take another 10 days, so please hang in there. The best time to visit the ATMs is either early in the morning or late at night after 12. If you have more than one debit card, you can draw more than Rs 2,000. Each card has a withdrawal limit of Rs 2,000. So, if you have three cards, you can draw Rs 6000.

If ATMs are shut, you can withdraw money from your bank by using a cheque or a withdrawal slip.

There is no limit to the amount being deposited in the bank where you have an account, but the I-T department will keep a tab on the deposits which can’t be explained. Moreover, there is no tax to be paid on deposits less than Rs 2.5 lakh.

2. While depositing or exchanging your notes at the bank, if you are asked to provide the ID card and the PAN card copy, make sure you attest these and also mention the amount being desposited, as well as the date. There are chances that PAN and ID proof copies without signatures are circulated and photocopied several times. So, take this precautionary step to ensure that your ID details are not misused by anyone.

3. For people who do not have bank accounts or valid ID proofs, the older notes can be transferred to a third-party account. An authorisation in writing, giving the third-party the permission to deposit cash in their account, is required. If your relative or friend has an account, you can also get the old notes exchanged into that account, provided the third-party gives you the permission in writing.

4. You can also exchange up to Rs 4,000 per day by filling a simple form and providing an ID proof to the bank. This could be done at any bank, irrespective of whether you have an account there or not.

5. If the KYC is complete, there is no limit on the quantity and value of older notes that you can put into your account. However, where the compliance with KYC norms is incomplete, a maximum of Rs 50,000 can be deposited. So, please ensure that all your KYC formalities are up to date.

6. Notes can only be exchanged or deposited till December 30. In case of failure to exchange these notes before the deadline, you will have to contact RBI offices and provide necessary documentation as specified by them. You will then be given an opportunity to deposit your money at specified offices of the Reserve Bank of India till March 31.

7. While demonetising the high-value currency notes on Tuesday, the government had permitted people to use such notes for payment for certain services like rail and metro ticket, rail catering, airline ticket, buying LPG cylinder and medicines with doctor's prescription. Delhi Metro will also accept the older notes till November 12. Old notes can also be used to pay water and electricity bills.

8. If you are going to deposit Rs 10 lakh but have declared an income that doesn't match that amount, please avoid doing this. This would be treated as a case of tax evasion and the tax amount, plus a penalty of 200% of the tax payable, would be levied under section 270(A) of the income tax Act. In case of any query, you may approach the control room of RBI by email or phone. You can mail to publicquery@rbi.org.in or call 022 22602201 / 022 22602944.

9. Finance Minister Arun Jaitley has said that deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy any tax immunity. So, if you are thinking of going to a money-exchange or buying gold from the bullion market with old notes, please be aware that the taxman has eyes everywhere. The transactions of anything over Rs 2.5 lakh come under the I-T lens. Not only will you have to pay the mandated 30 per cent tax on it, but it comes with a 200 per cent penalty, too.

10. Starting today, banks are open till Sunday. They shall remain open from 8 in the morning to 8 in the evening to assist customers. All charges pertaining to cash deposits into one's accounts will be waived till November 30 and the fees for transacting at ATMs will also be scrapped until 31 December.

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