Page 47 - Banking Finance December 2016

P. 47

RBI CIRCULAR

ATMs - Non-dispensing of Old High customers till 30 Dec 2016. It has also been decided
that banks may fix a limit of Rs 2000/- per day per card
Denomination Notes - Closure of operations
withdrawal limit at ATMs, for all their customers, till
RBI/2016-17/111 November 18, 2016.
DPSS.CO.PD.No./02.10.002/2016-2017 6. This directive is issued under section 10(2) read with
section 18 of the Payment and Settlement Systems Act
Madam / Sir, 2007 (Act 51 of 2007).
1. The Government of India has withdrawn from
immediate effect (midnight of November 8, 2016) the Yours faithfully
legal tender character of the existing and any older (Nanda S. Dave)
series banknotes in the denominations of Rs 500 and Chief General Manager
Rs 1000. As such, dispensing of these Old High
Denomination (OHD) banknotes by banks through their Withdrawal of Legal Tender Character of
ATMs has to be stopped from midnight of November
8, 2016. existing Rs 500/- and Rs 1000/- Bank
2. In order to facilitate the banks to prepare themselves Notes
for the same, all Public sector /Private sector/Foreign RBI/2016-17/112
banks, RRBs, Urban Co-op banks and State Co-op banks
have already been advised to remain closed for public DCM (Plg) No.1226/10.27.00/2016-17
transactions on November 09, 2016.
Dear Sir
3. In view of the above, it has been decided that all ATMs 1. In terms of Gazette Notification No 2652 dated
will remain closed for operations from the mid night of November 08, 2016 issued by Government of India, Rs
Nov 08, 2016 so that they do not dispense the
500 and Rs 1000 denominations of Bank Notes of the
withdrawn old higher denomination banknotes (OHD).
existing series issued by Reserve Bank of India
The ATMs may resume functioning from November 11,
(hereinafter referred to as Specified Bank Notes) shall
2016 upon their recalibration to dispense bank notes
cease to be legal tender with effect from 9th
of only Rs 50 and Rs 100 denominations.
November, 2016, to the extent specified in the
4. Banks and ATM switches may take necessary steps to Notification. A new series of Bank Notes called
initiate this measure with immediate effect for both Mahatma Gandhi (New) Series having different size and
on-us and off-us transactions. design, highlighting the cultural heritage and scientific
5. Further, so as to ensure customer convenience, banks achievements of the country, will be issued. Bank
are also advised to provide all cash withdrawal branches will be the primary agencies through which
transactions at their ATMs free of cost to their the members of public and other entities will be

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