Page 49 - Banking Finance December 2016

RBI CIRCULAR

b. Banks have to accord top priority to provide facility account, provided specific authorisation
for exchanging / accepting deposits of Specified therefore accorded by the third party is
Bank Notes and open additional counters to meet presented to the bank, following standard
the public demand and keep the counters open for banking procedure and on production of valid
extended hours, if necessary. Maximum staff proof of identity of the person actually
should be deployed for this purpose. If necessary tendering, as indicated in Annex-5;
banks may consider hiring retired employees for a
(vi) Cash withdrawal from a bank account over the
temporary period to take care of additional work
counter shall be restricted to Rs 10,000/- per
load.
day subject to an overall limit of Rs 20,000/- a
c. Provision of Exchange Facility: week from the date of the notification until
The specified bank notes held by a person other the end of business hours on 24th November,
than a banking company referred to in sub- 2016, after which these limits shall be
paragraph (1) of paragraph 1 or Government reviewed;
Treasury may be exchanged at any Issue Office of (vii) There shall be no restriction on the use of any
the Reserve Bank or any branch of public sector
non-cash method of operating the account of
banks, private sector banks, foreign banks,
a person including cheques, demand drafts,
Regional Rural Banks, Urban Cooperative Banks credit or debit cards, mobile wallets and
and State Cooperative Banks for a period up to and electronic fund transfer mechanisms or the
including the 30th December, 2016, subject to the like;
following conditions, namely:-
(i) The specified bank notes of aggregate value (viii)Withdrawal from Automatic Teller Machines
of Rs 4,000/- or below may be exchanged for (hereinafter referred to as ATMs) shall be
any denomination of bank notes having legal restricted to Rs 2,000 per day per card up to
tender character, with a requisition slip in the 18th November, 2016 and the limit shall be
format specified by the Reserve Bank and raised to Rs 4,000 per day per card from 19th
November, 2016;
proof of identity; the limit of Rs 4,000/- for
exchanging specified bank notes shall be (ix) Any person who is unable to exchange or
reviewed after fifteen days from the date of deposit the specified bank notes in their bank
commencement of this notification and accounts on or before the 30th December,
appropriate orders may be issued, where 2016, shall be given an opportunity to do so
necessary; at specified offices of the Reserve Bank or
such other facility until a later date as may be
(iii) There shall not be any limit on the quantity or
specified by it.
value of the specified bank notes to be
(x) Business Correspondents (BCs) may also be
credited to the account maintained with the
allowed to exchange Specified Bank Notes
bank by a person, where the specified bank
notes are tendered; however, where upto Rs 4000/- per person as in the case of
compliance with extant Know Your Customer bank branches, against valid identity proof
and requisition slip. For this purpose banks
(KYC) norms is not complete in an account, the
may, at their discretion, enhance the cash
maximum value of specified bank notes as may
be deposited shall be Rs 50,000/-; holding limits of BCs at least till December 30,
2016.
(iv) The equivalent value of specified bank notes
(xi) While crediting the value of Specified Bank
tendered may be credited to an account
maintained by the tenderer at any bank in Notes to Jan Dhan Yojna Accounts, the usual
accordance with standard banking procedure limits will apply mutatis mutandis.
and on production of valid proof of Identity;
4. Reporting Mechanism
(v) The equivalent value of specified bank notes Each bank branch exchanging Bank Notes in the
tendered may be credited to a third party
denominations of Rs 500/- and Rs 1,000/- shall report
BANKING FINANCE | DECEMBER | 2016 | 49

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