Specified Bank Notes (SBN) and Stipulations for SBN Exchanges
Government of India, on 8 November 2016 announced withdrawal of legal tender status of Rs. 500 and Rs.1000 bank notes. The term Specified Bank Notes (SBN) is being used to refer the said currency notes. The demonetisation process was carried out with the intention of countering the menace of corruption, black money, fake notes and terrorism. Lot of measures was announced by the government to alleviate the discomforts of the people in the country as the economy of the country has traditionally been cash based economy.
We are giving below the stipulations governing the exchange of Specified Bank Notes (SBN) and the norms stipulated for withdrawal cash through various channels. The details are updated as at 9.30 PM ,IST, 24 November 2016.
Specified Bank Notes (SBN) exchange limit over the counter.
Over the counter exchange facility that was permitted upto Rs. 2000/- per person stands withdrawn after midnight of 24 November, 2016. Banks have been instructed to encourage public to deposit SBN into their bank accounts. Banks are required to facilitate opening of new accounts for unbanked people.
Withdrawal limits from accounts over the bank counters
• Maximum Rs.24,000/- per week per customer.
• For Current Accounts and specified Overdraft / Cash Credit/Working Capital accounts, maximum withdrawal limit is Rs. 50,000/-. The said accounts should have been operational at least for last three months.
• The week is calculated from 10th to 16th and from 17th to 23rd November. So a new week has commenced on 24th November,2016
Cash Withdrawal from ATM
• Daily limit of Rs.2,500/- per day in the recalibrated ATMs( ATMs modified to dispense new Rs. 2000/- and or Rs. 500/- currency notes)
• Daily limit of Rs. 2,000/- per day for other ATMs. Such ATMs will dispense Rs. 50/- and Rs. 100/- bank notes till recalibration is carried out.
Cash Deposit into accounts at branch
• Specified Bank Notes (SBN) can be deposited to own account without ceiling. No maximum limit stipulation for KYC complied accounts with PAN card details. Remittance allowed upto Rs. 50,000/- if no PAN number is provided.
• A third party can remit to an account only with the authorization letter of the account holder along with ID proof of third party.
• SBN deposit to Current / Over Draft/ Cash Credit Accounts to be made with the signature of the authorized signatory along with a declaration to the effect that they came in possession of the currency before demonetisation.
• SBN cannot be accepted in accounts with fee collection/ CMS Arrangements. Customers may remit cash in their account and then transfer to said accounts.
• Places of worship which receive contributions from devotees through hundis, boxes etc are permitted to deposit SBN. Such religious institutions shall deposit SBNs at their base branches. No declaration is required for such remittances. No limit for cash deposit.
Cash deposit in Currency Deposit Machine (CDM)
Customers can use their ATM card for accessing CDMs for depositing cash. Deposits without cards in CDM are withdrawn for the time being. SBNs can be deposited in CDMs without ceiling if PAN is updated in the account. Otherwise ceiling of Rs. 50,000/- is applicable.
