last date for using OHD notes extended till 14.11.2016 – Finmin Orders
Press Information Bureau
Government of India
Ministry of Finance
11-November-2016 19:14 IST
Government extends existing exemptions with regard to cancellation of the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations until the expiry of 14th November, 2016, with certain modifications / additions to the existing exemptions; Governments reassures that there is enough cash with RBI and Supply of cash to Bank branches and ATMs are being stepped up gradually.
While cancelling the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations w.e.f. the expiry of the 8th November, 2016, exemptions were allowed for certain transactions for the first 72 hours with a view to minimizing inconvenience to the public. Subsequently, based on feedback received from various quarters, certain more transactions were included for exemption.
The Government has been closely monitoring the implementation of the decision. Considering various representations received from different quarters in the matter, it has now been decided that the existing exemptions may be extended until the expiry of 14th November, 2016, with the following modifications / additions to the existing exemptions:
(i) Payment for court fees will be included in the exemptions.
(ii) The ID proof of customers will be required for transactions in consumer cooperative stores.
(iii) Payments towards utility bills will be restricted to only individuals / households for arrears and / or current bills. No advance payments will be allowed.
(iv) Payments in toll-plazas of the State and National Highways will be deleted from exemptions, considering that the Ministry of Road Transport and Highways is separately issuing instructions in this regard.
There is enough cash with RBI. Supply of cash to Bank branches and ATMs are being stepped up gradually.
OHD notes, Finmin Orders
Postal Life Insurance (PLI) Vs LIC - Which is best?
Do you know your Post Office also offers Life Insurance? Even if you know then there is a huge confusion among buyers like whether to buy with the Post Office or with LIC, because the Government of India backs both. Hence, let us see which is best for whom.
What is PLI (Postal Life Insurance)?
PLI (Postal Life Insurance) is exactly like any Life Insurance company, for example LIC or ICICI Pru Life Insurance. The only difference is, it is run and managed by Post Office. PLI currently offers only traditional plans. Therefore, no term insurance or ULIPs.
How many types of policies PLI (Postal Life Insurance) offers?
Currently PLI offers below mentioned traditional endowment products.
1) Whole Life Assurance Policy (Suraksha).
This is exactly like LIC’s Whole Life Policy. The nominee will receive the accrued bonus and sum assured after the death of the policyholder. Minimum age at entry is 19 Yrs and maximum is 55 Yrs. Minimum Sum assured is Rs.20, 000 and maximum Sum Assured is Rs.10, 00,000.
2) Endowment Assurance (Santosh).
This is a typical endowment plan where a policyholder gets sum assured along with bonus if he survive until the maturity period. In case of his death during the policy period, then his nominee will receive the sum assured along with accrued bonus. Eligibility criteria are same as that of Whole Life Assurance Policy (Suraksha).
3) Convertible Whole Life Assurance (Suvidha).
This plan is exactly like Endowment Assurance. The only difference is, if you don’t convert this policy to Endowment Assurance then it is treated as Whole Life Assurance plan.
4) Anticipated Endowment Assurance (Santosh).
This is typical money back endowment plan, where the maximum sum assured is restricted to Rs.5, 00,000. In this category, PLI offers two types of plans. One is 15 yrs and other is a 20 yr term.
5) Joint Life Assurance (Yugal Suraksha).
You can buy this policy with your spouse as co-insured. To avail this facility one the spouse must be eligible to buy PLI. Life Insurance coverage is for both husband and wife to the sum assured you bought. The maximum sum assured is Rs.1, 00,000.
6) Scheme for physically handicapped persons.
This plan is uniquely designed for handicapped persons. Based on the condition of handicap, premium raised or increased. Rest of plan features are exactly like the others.
7) Children Policy
PLI started to offer child policy from 2006. Few features are listed below.
- It mainly covers the life insurance of children.
- Maximum two children can be insured in a family.
- Children between 5 Yrs to 20 Yrs are eligible for this plan.
- Maximum Sum Assured is Rs.1,00,000.
- Premium waiver benefit in case of main policy holder dies.
- In case of death of children, then sum assured along with bonus be payable to main policy holder.
- Responsibility of premium payment rest with main policy holder.
So what is the difference between PLI and LIC?
- Eligibility-To buy PLI you must be employee of the Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, etc. PLI also extends the facility of insurance to the officers and staff of the Defense services and Para-Military forces. Where as LIC offers it’s plans to all citizens of India. So when it comes to flexibility to buy then LIC holds edge than PLI.
- Plans offered-There is no such difference. Because LIC and PLI mostly dependent on traditional endowment type of Life Insurance Plans. But along with that LIC offers term insurance (recently LIC launched online term insurance), which is not at all touched by PLI.
- Premium Rate-When compare to LIC or any private insurers, PLI offers cheap premium. So this is a most advantage of buying endowment plans with PLI than with LIC.
- Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas currently LIC offers a bonus rate of around 4% to 5%.
- Where to buy-In case of PLI, you have to visit to the Post Office where these schemes are offered. Whereas in case of LIC, you will easily get agents. These agents can come to your doorstep and offer the service. Along with that recently LIC launched an online buying also (restricted to online term plan and pension plan). Therefore, in case of buying LIC offers more flexibility than PLI.
- Age Limit-PLI offers insurance to the age group of 19-55 yrs. Where as in LIC you can get the insurance coverage up to 75 yrs (not in all policies).
- Maximum Sum Assured-PLI offers you the maximum sum assured of Rs.50 Lakh. Whereas, LIC offers an unlimited maximum sum assured.
- Premium Payment-You need to visit the Post Office to pay the premium dues. However, in case of LIC, you can pay it in branch, collection points or through online.
- Tax benefits-Both PLI and LIC offer same tax benefit for deduction under Sec.80C.
Considering all these features and differentiation between PLI and LIC, I feel PLI is still in olden days. Because it offers less insurance coverage, entry is restricted to only few, service issues, no term insurance and age limit. Whereas only two positive points that attract you towards PLI are lesser premium and higher bonus.
Whether it is prudent to buy endowment plans from PLI?
Even though PLI offers you higher return and lower premium compare to LIC and other private insurers, the returns in the long run may erode drastically if you consider the inflation. Along with that, you will be under insured due to restricted maximum insurance limit. Post Offices still not customer friendly. So you may face service issues and claim settlement issues.(now improved)
Courtesy : http://www.basunivesh.com/
Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes –Limit for Withdrawal of Cash
RBI/2016-17/123
November 10, 2016
The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/
Regional Rural Banks / Urban Cooperative Banks/
State Cooperative Banks
Dear Sir
Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes –Limit for Withdrawal of Cash
Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 November 08, 2016.
2. In terms of para 3.c (iv) of the said circular, cash withdrawal from a bank account over the counter shall be restricted to ₹ 10,000/- per day subject to an overall limit of ₹ 20,000/- a week from the date of the notification until the end of business hours on 24th November, 2016, after which these limits shall be reviewed. It is clarified that the above limits are not applicable to cash withdrawal from a bank account by
- one bank from another bank,
- Post Office,
- Money changers operating at International airports and
- operators of White Label ATMs.
3. The branches maintaining Currency Chests are advised to accommodate the requests from other branches in their vicinity – linked or otherwise – for supply of cash.
4. Deposits of Specified bank Notes into all types of deposit/loan accounts is allowed subject to CTR/STR reporting.
Yours faithfully
(P Vijaya Kumar)
Chief General Manager
Rs 500 and Rs 1000 notes banned: Your questions answered by the RBI
Why this scheme?
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
What is this scheme?
The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.
How much value will I get?
You will get value for the entire volume of notes tendered at the bank branches / RBI offices.
Can I get all in cash?
No. You will get upto Rs 4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.
Why I cannot get the entire amount in cash when I have surrendered everything in cash?
The Scheme of withdrawal of old high denomination(OHD) notes does not provide for it, given its objectives.
Rs 4000 cash is insufficient for my need. What to do?
You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.
Also Read: Black is the new white: Secondary real estate transactions to become transparent
What if I don't have any bank account?
You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.
What if, if I have only JDY account?
A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
Where can I go to exchange the notes?
The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
Also Read: Why PM Modi’s move will lead to disruption than economic benefit
Need I go to my bank branch only?
For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.
For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Can I go to any branch of my bank?
Yes you can go to any branch of your bank.
Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds Rs 4000.
I have no account but my relative / friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder relative/friend etc gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.
Should I go to bank personally or can I send the notes through my representative?
Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.
Can I withdraw from ATM?
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs upto a maximum of Rs.2,000/- per card per day upto 18th November, 2016. The limit will be raised to Rs.4000/- per day per card from 19th November 2016 onwards.
Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs10,000/- in a day within an overall limit of Rs.20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. upto 24th November 2016.
Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, OHD notes can be deposited in Cash Deposits machines / Cash Recyclers.
Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?
You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.
How much time do I have to exchange the notes?
The scheme closes on 30th December 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
I am right now not in India, what should I do?
If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)
I am an NRI and hold NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the OHD banknotes to your NRO account.
I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to Rs 5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.
I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
You can use the OHD notes for paying for your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.
What is proof of identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.
Where can I get more information on this scheme?
Further information is available at our website (www.rbi.org .in) and GoI website (www.rbi.org.in)
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
What is this scheme?
The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.
How much value will I get?
You will get value for the entire volume of notes tendered at the bank branches / RBI offices.
Can I get all in cash?
No. You will get upto Rs 4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.
Why I cannot get the entire amount in cash when I have surrendered everything in cash?
The Scheme of withdrawal of old high denomination(OHD) notes does not provide for it, given its objectives.
Rs 4000 cash is insufficient for my need. What to do?
You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.
Also Read: Black is the new white: Secondary real estate transactions to become transparent
What if I don't have any bank account?
You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.
What if, if I have only JDY account?
A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
Where can I go to exchange the notes?
The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
Also Read: Why PM Modi’s move will lead to disruption than economic benefit
Need I go to my bank branch only?
For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.
For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Can I go to any branch of my bank?
Yes you can go to any branch of your bank.
Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds Rs 4000.
I have no account but my relative / friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder relative/friend etc gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.
Should I go to bank personally or can I send the notes through my representative?
Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.
Can I withdraw from ATM?
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs upto a maximum of Rs.2,000/- per card per day upto 18th November, 2016. The limit will be raised to Rs.4000/- per day per card from 19th November 2016 onwards.
Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs10,000/- in a day within an overall limit of Rs.20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. upto 24th November 2016.
Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, OHD notes can be deposited in Cash Deposits machines / Cash Recyclers.
Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?
You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.
How much time do I have to exchange the notes?
The scheme closes on 30th December 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
I am right now not in India, what should I do?
If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)
I am an NRI and hold NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the OHD banknotes to your NRO account.
I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to Rs 5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.
I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
You can use the OHD notes for paying for your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.
What is proof of identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.
Where can I get more information on this scheme?
Further information is available at our website (www.rbi.org .in) and GoI website (www.rbi.org.in)
Source:-The Economic Times
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