Okay, so the banks opened today the first time after PM Modi’s revolutionary decision on scrapping the high-denomination notes of Rs.500 and Rs.1000 and long queues were expected.
Most customers are in panic. They don’t have black money but are in a bit of confusion as to the entire process, which, although necessary, is slightly cumbersome for the hoi polloi.
But there is no need to fear if the money is hard earned.
Before everything, you need to fill this form if you wish to exchange:
When you deposit your cash in a bank where you have an account
That’s easy, provided you had already responded to that Know Your Customer (KYC) reminder your bank sent you and everything is okay in that.
You can deposit as much cash you have in one go.
If there is something up with your KYC, there will be a limit of Rs.50,000.
But note that the amount you deposit is not beyond what you normally transact in. If the I-T department sniffs something odd, it will come knocking at your door.
You can deposit your money in any branch of the bank you have an account with.
Depositing in the bank where you don’t have an account or depositing in third-party account
You can do so after furnishing a valid government issued ID proof.
ID proof includes: 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.
You can deposit or exchange money in or for a third-party account after proper authorisation (in writing) from the latter and with valid ID proof.
The third-party authorisation is designed to help those from the lower income groups who do not have a bank account and those who are not in India as of now.
NRIs can deposit the money in their Non Resident Ordinary Rupee (NRO) account.
Note that all deposits can be made till December 30, 2016 following which the deposit can be made at specific RBI offices in accordance with RBI notifications.
Is ID card needed for everything?
Except for depositing money in a bank where you have an account in, you’d be needing it for all other purposes mentioned above.
Will your deposit be taxed?
Yes, it will if the deposit is above Rs.2.5 lakh within the window.
- You can deposit money in the same manner at a post office you have an account in.
- You should ideally go to the bank on your own.
- If you send a representative, that representative will have to carry your written authorisation.