How to deposit old Bank notes of Rs 500 and Rs 1000 in RBI after 30.12.2016

The President of India has cleared the ordinance (i.e., Specified Bank Notes (cessation of Liabilities) ordinance, 2016). regarding SBN/ deposit old Bank notes in RBI.

[ Note : SBN means Specified bank notes of Rs 500 / Rs 1000 herein also called Old bank notes  )

Key takeaways from such ordinance and RBI Guidlines for Deposit old Bank notes in RBI 

Places of Exchange of old Bank Notes ( Rs 500 / Rs 1000) after 30.12.2016 .

This facility will be made available through five of the offices of the Reserve Bank viz. the Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur.

Deposit old Bank notes in RBI by Resident citizen of India

Any citizen of India can deposit old notes (i.e., demonetized notes of Rs 500 and 1,000) at RBI . Following are Conditions :-

1. The facility will remain open for residents from January 2, 2017 to March 31, 2017
2. Only those residents  who were abroad during the period from November 9, 2016 to December 30, 2016 will be eligible to avail this facility  only once during the tenure of the facility.
3. There will be no monetary limit for submission of SBNs in the tender.
4. He needs to give declaration that he was outside India during November 9, 2016 till December 30, 2016. for this purpose a copy of Passport with immigration stamp as proof of the individual’s absence from the country during the period November 9, 2016 to December 30, 2016 should be submitted. Passport in original should be presented at the RBI counter for verification.
5. He needs to submit requisite document as per provisions of Section 114B of IT Rules, 1962 will be required
6. He needs to submit Undertaking that he had not utilised the exchange/deposit of SBNs facility underthe earlier facility during November 10, 2016 to December 30, 2016. He needs to undertake that he is availing this facility only once and similar facility will not be available from this or any other Office of RBI. Tenders should be submitted in a Tender Form [ Download  Tender Form – For Resident Indians – For Deposit of Old Bank Notes at RBI ]
7. He needs to Encl followingi. Copy of Passport evidencing being abroad during November 9 and December 30, 2016ii. Copy of Valid ID Proof / Aadhaar Cardiii. PAN Card or Form 60iv. Copies of bank account statements [Copies of all bank account statements evidencing that no SBNs were deposited during November 10, 2016 to December 30, 2016. ]

Deposit old Bank notes in RBI by Non Resident Indians 

Any Indian citizen who is non-resident can deposit old notes at RBI till June 30, 2017 after giving declaration that he was outside India during November 9, 2016 till December 30, 2016.

1. Only those NRIs who were not present in India during the period from November 9, 2016 to December 30, 2016 will be eligible to avail this facility   once during the tenure of the facility.
2. Tenders should be submitted in a Tender Form [ Download Tender Form – For Resident Indians – For Deposit of Old Bank Notes at RBI ]
3. Tenders will be restricted to a maximum of Rs 25,000 per individual depending on when the notes were taken out of India as per relevant FEMA rules.
4. A Copy of Passport with immigration stamp as proof of the individual’s absence from the country during the period November 9, 2016 to December 30, 2016 should be submitted. Passport in original should be presented at the RBI counter for verification.
5. A certificate issued by Indian Customs on arrival through Red Channel after December 30, 2016 indicating the import of SBNs, with details and value thereof should also be submitted.
6. Copies of statements of all bank accounts in India evidencing that no SBNs were deposited during November 10, 2016 to December 30, 2016.
7. Requisite document as per provisions of Section 114B of IT Rules, 1962 are required to be submitted.
8. An acknowledgment of receipt will be issued to the tenderers pending credit of admissible amount.
9. On ascertaining that the tenderer was abroad during the period from November 9, 2016 and December 30, 2016, the account is KYC compliant, fulfilment of other conditions and the genuineness of the notes tendered, admissible amount will be credited to the account under advice to the tenderer.
10. The facility will remain open for NRIs from January 2, 2017 to June 30, 2017.
11. He needs to Enclose followings :-i. Documentary evidence supporting being abroad from November 9 toDecember 30, 2016ii. Passport copy with pages bearing stamps of Indian immigration authorityiii. Certificate issued by Indian Customs on arrival through Red Channelevidencing proof of import of SBNs

    iv. Copy PAN Card or Form 60

    v. Copies of statements of bank accounts maintained in India

Appeal against refusal by RBI to Credit  amount deposited in Old Bank Notes:-

On ascertaining that the tenderer was abroad during the period from November 9, 2016 and December 30, 2016, the account is KYC compliant, fulfilment of other conditions and the genuineness of the notes tendered, admissible amount will be credited by RBI to the account under advice to the tenderer.

Any person, aggrieved by the refusal of the Reserve Bank to credit the value of SBNs tendered, may represent to the Central Board of the Reserve Bank within fourteen days of the communication of such refusal to him. Such representations should be addressed to the Central Board, Reserve Bank of India, Secretary’s Department, Central Office Building, 16th Floor, Shahid Bhagat Singh Marg, Mumbai – 400 001.

Penalty for false declaration to RBI 

Any person who makes false declaration to RBI shall be punishable with fine of Rs 50,000 or five times the amount of old notes, whichever is higher.

Penalty for holding old bank notes after Last date

 Any person who holds old notes after March 31, 2017  (in Case of Resident Indians  )  or June 30, 2017 ( in case of Non Resident Indians )  may need to pay penalty. The amount of penalty may extend to Rs 10,000 or five times the value of old notes, whichever is higher. In case of contravention  or default is committed by Company , firm , trust , Co operative Society  or any assocaition of individuals, every person who at the time default was in charge of and responsbile to the company,  shall be deemed to be guilty of the contravention or default.

Limit on Holding of Old bank Notes

However, any person can hold up to 10 old notes after March 31, 2017 or June 30, 2017. Old notes up to 25 can be possessed for purposes of study, research and numismatics

Related Book on Taxation on deposit old Bank notes

Related Post on Demonetization