RMA collects old high denomination INR 500, 1,000
The Royal Monetary Authority (RMA) has notified the public to deposit 500 and 1,000 denomination Indian Rupee notes in accordance with a press release from the Reserve Bank of India (RBI) on 8 November 2016.
The Government of India (GOI) has announced the withdrawal of legal tender status for Rs. 500 and Rs. 1,000 denominations banknotes of Mahatma Gandhi Series issued by the RBI till 8 November, 2016.
To minimize inconvenience, RMA of Bhutan states that the old high denomination INR bank notes can be deposited into personal bank accounts till the close of business hours on 15 December, 2016.
It is notified that to enable the RMA to collect and surrender the notes to the RBI through the State Bank of India by 30 December, 2016.
It is also notified that a person can exchange a bank note of any denomination having legal tender character by providing a requisition slip as per the format specified by RMA.
However, old high denomination INR bank notes of aggregate value of Rs. 10,000 and below held by a person can be exchanged at any bank branches.
The Bank of Bhutan has specified that the exchange of INR with Ngultrum would be entertained only in the branches where there are fake note detecting machines.
The GOI decided to withdraw the legal tender of Rs 500 and 1000 notes to curb the financing of terrorism through fake Indian currency notes and use of such funds for subver- sive activities and other contrabands into India, and to eliminate black money.
A press release has stated that fake currency notes in circulation in these 500 and 1,000 denominations is comparatively larger as compared to those in other denominations.
The limit of Rs. 10,000 for exchanging old high denomination INR bank notes at bank branches is expected to be reviewed after 15 days with an appropriate notification to the public.
Cash withdrawal from a bank account over the counter is restricted to Rs. 10,000 per month.
There is no restriction on the use of any noncash method of operating the account that includes cheques, demand drafts, credit cards, and electronic fund transfer mechanisms.
Individuals who require more than INR 10,000 can avail themselves of INR prepaid card facility made available in the banks.
In the meantime, hundreds of people are rushing to RMA office to exchange old high denomination INR 500 and INR 1,000 with Ngultrum.