It is quite a confusing situation right now in the country after the announcement of demonetization of the current Rs. 500 and Rs. 1000 notes, as the Prime Minister Narendra Modi made a sudden announcement at night and locked down the hands of everyone, especially the hands of black money holders.
While many call it a masterstroke, some are facing problems in their daily lives. Not having the regular cash of Rs. 100 notes and lower denominations in hand is the major problem and the closure of banks and ATMs for the first two days made it harder, but it was necessary for the banks to arrange the new notes at the branches and ATMs.
The recent announcement by the govt. was that the banks will be opened during this weekend, i.e. on Saturday and Sunday. This is to make sure that not everyone faces a problem and the middle-class and people with basic wages can take benefit and deposit the small amounts they hold with the Rs. 500 and Rs. 1000 notes, while the exchanging is also possible with a limit of Rs. 4000.
Here are some pointers that you need to know about the older notes, their depositing, usage of ATMs and visiting of banks during this weekend.
- No extra charges / surcharges will be taken from people for using different bank ATMs. It was a limit of five transactions a month earlier and from the sixth transaction, a surcharge was being taken.
- Deposits above Rs. 2.5 lakh will be taxed and could draw a 200 percent penalty if found disproportionately higher than the account owner’s income. To make it clear, the 200% penalty is for the tax that has to be paid for the undisclosed amount.
If you plan to buy jewellery by paying cash, you will also be tracked by the govt. and IT department.
- The govt. has made it clear that people who are depositing small amounts should not face any problem and this major step of demonetization of the notes is done for the benefit of them.
- Many banks have announced that while they will be operational during the weekend, they will have longer working hours to help people deposit the money.
- From 11th November, ATMs will have the new Rs. 500 and Rs. 2000 notes available for withdrawing, but during the initial days, there will be a limit of withdrawing Rs. 2000 per day at ATMs, and later it will increase to Rs. 4000 per day.
- If you want to withdraw higher amount, you can do that by cheque at your bank and the maximum amount you can withdraw is Rs. 10000 per day.
- Water and electricity bills, government penalties, and at state-run petrol pumps, government hospitals, metros will accept the older notes till Friday, i.e. 11th November.
Rs. 1000 note is not completely gone, as the govt. has announced that soon a new Rs. 1000 note will be released.
- Tolls on highways are going to be free for initial days until people have proper cash in the hand, as not everyone possesses smaller denomination notes.
- Airlines won’t cancel your tickets if you had paid for them using the older Rs. 500 and Rs. 1000 notes.
- Hawala payment brokers are trying their best in taking advantage of this situation and giving back Rs. 300 for Rs. 500, but most of them are being tracked so it is advised to stay away from the hassle and try to deposit your money only in the banks.