Banks are reopening today and people are queuing up at the banks to deposit and exchange the Rs 500 and Rs 1000 notes that they have.
But before you rush with your money, check out below what all things you can do at the branches today:
Deposit cash: Old Rs 500 and Rs 1000 notes can be deposited into their bank accounts and/or exchanged. There will not be any limit on the quantity or value. However, if your account is not Know Your Customer (KYC) norms compliant, the maximum value is Rs 50,000.
Exchange is possible: Old Rs 500 and Rs 1000 notes worth Rs 4,000 or below can be exchanged for any denomination having legal tender, i.e Rs 100, Rs 50 etc. But you gave to submit a requisition slip with proof of identity and along with the notes to be exchanged.
Deposit in third-party accounts: The equivalent value of the Rs 500 and Rs 1,000 tendered can be credited to a third-party account only if you have a proof of authorisation from the account holder. You will also have to produce a valid proof of identity.
Withdraw cash: Up to Rs 10,000 can be withdrawn from your bank account, subject to an overall limit of Rs 20,000 in a week for the first fortnight, i.e. until the end of business hours on 24 November 2016.
What are experts saying?
Mumbai-based certified financial planner Pankaj Mathpal says the first rule is don't panic. "If you have small amount of cash which is in the form of Rs 500 and Rs 1,000 notes which you had kept for your daily expenses, you should exchange that amount (up to the permissible limit). If you have larger amount of cash savings in invalid currency, you should deposit that amount in the bank," he say.
The banks will not refuse accepting any larger amount. But, if that amount is black money or you are unable to prove where the money has come from, you should be prepared for consequences of tax evasion.
"This means, not only will you pay the tax on that money, but also 200 percent. Banks have been informed to give the data of deposits to IT department," Mathpal says.
In short, if you thought you could take sackful of cash to your bank and whiten them, it is just an illusion.