Jan 01, 2017

Demonetisation: Withdrawal of Legal Tender of Bank Notes of Denominations 500 and 1000

In order to contain the rising incidence of fake notes and black money, the scheme to declare the old currency notes in the denominations of Rs. 500 and Rs. 1000 invalid as legal tender, was introduced by the Government of India (‘GoI’). In this regard, the Ministry of Finance issued a notification dated November 8, 2016, declaring that the bank notes of existing series of denomination of the value of Rs. 500 and Rs. 1000 (‘Bank Notes’) will cease to be legal tender on and from November 9, 2016. The Bank Notes were allowed to be: (i) exchanged for value at RBI Offices till December 30, 2016 and till November 25, 2016 at bank branches/Post Offices, and (ii) deposited at any of the bank branches of commercial banks/Regional Rural Banks/Co-operative banks (only Urban Co-operative Banks and State Co-operative Banks) or at any Head Post Office or Sub-Post Office during the period from November 10, 2016 to December 30, 2016.




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