In an attempt to widen and hasten the currency redistribution in hands of citizens, the Reserve Bank of India (RBI) has revised limits on currency exchange and withdrawal.

Till 13 November 2016, the maximum cash you were allowed to take back with you was Rs4,000 per day in exchange of your old Rs500 and Rs1,000 notes. You could also withdraw up to Rs10,000 a day, subject to maximum of Rs 20,000 a week from your bank account and withdraw Rs2,000 per day from ATM.

Limits expanded

The first four days after the move saw long queues outside banks for currency exchange, withdrawal and deposit. The RBI has now increased the limit for exchange of Rs500 and Rs1,000 currency notes to an amount of Rs4,500 at a bank counter. The daily ATM withdrawal limit has been increased by Rs500 to Rs2,500. But this is only for the recalibrated ATMs.

In other ATMs, the previous limit continues, where Rs100 and Rs50 notes are being dispensed. The RBI has told banks to waive all charges related to ATM transactions across the country, regardless of whether the users are account holder with the bank or not. Additionally, for withdrawal over the counter, the weekly limit has been increased by Rs4,000 to Rs24,000, and there is no daily limit.

All these measures are expected to boost access to currency for individuals and ease the burden of funding daily cash expenses.

Remember to carry your ID proofs for these transactions. For exchange of currency it is mandatory. For deposits below Rs50,000 you may not be asked however, it is prudent to carry. Banks will also ask you to fill a form, wherein you will need to fill in details such as name of the bank branch, your name, and details of old high denomination notes for exchange.

Along with the increase in limits on currency exchange and withdrawal from banks, RBI has introduced some more measures to make the transition smoother. Pensioners needn’t be alarmed with the submission of annual life certificate, for which November each year is the deadline. This has now been extended to 15 January 2017. Some banks were already implementing separate queues and services for senior citizens. Now the RBI has issued an official statement advising banks to make such arrangements across branches for senior and differently abled citizens. Separate queues are also advised for different transactions, that is: for exchange, withdrawal and deposit. Finally, the RBI has advised people to refrain from making multiple trips to the banks and avoid hoarding currency, giving an assurance that enough currency is available with the central bank.

Measures have also been taken to prevent people from queuing up multiple times to exchange old currency notes.

People who change the notes over the counter, will be now have their fingers marked with indelible ink so that they cannot change the notes more than once.