No.RB/CIR/IDS/1507
November 28, 2016


The Chief Executives of Member Banks

Dear Sir/Madam,


Accepting payment under IDS 2016

Kindly refer to the appended self-explanatory email from Reserve Bank of India and
Central Board of Direct Taxes on accepting payment under IDS 2016.

In this connection, we would like to invite your attention to the FAQ
(https://www.rbi.org.in/Scripts/FAQView.aspx?Id=119 ) on "Withdrawal of Legal
Tender Character of the existing Bank Notes in the denominations of  500/ - and 
1000/-`'






Question No. 22 (l) in the above FAQ clearly sets out that banks can accept old Rs.
500 denomination notes for payment of taxes and penalties. Thus, there should not
be any doubt that these notes can be accepted for payment of tax, surcharge
and penalties under the IDS, 2016, upto December 15, 2016.

Banks must adhere to the above instructions strictly and banks should ensure that
the branches are aware of the FAQs.



Yours faithfully,




K Unnikrishnan
Chief Executive (Offg)




World Trade Centre, 6th Floor, Centre 1 Bldg., World Trade Centre Complex, Cuffe Parade, Mumbai - 400 005. Phone: 22174040, Fax: 22184222
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