Your questions on Rs 500 and Rs 1,000 notes

What do I do with the Rs 500 and Rs 1,000 notes I have with me now?

You can go to your bank and post offices to deposit the notes from November 10 (Thursday) till December 30. There will not be any limit to deposit cash. If you miss this deadline, such notes can be deposited with only specified offices of the RBI after submitting a declaration form on or before March 31.

... If you want to exchange the old notes for fresh cash, you can approach any bank or post office but get only up to Rs 4,000 till November 24

But the banks will take money only from Thursday. What will I do till then? How will I pay the vegetable vendor and the fish seller?

You have to use lower-denomination notes till then. People will also be able to use credit cards, debit cards and mobile wallets. If you do not have smaller notes but are known to friendly neighbourhood recipients such as the corner shopkeeper, you can ask for time and pay him later when the note crunch eases

What if I have a lot of cash in Rs 500 and Rs 1,000 notes?

You can deposit as much cash as you want. However, the existing stipulation of disclosing the PAN number for deposits exceeding Rs 50,000 will apply

How much time do I have to get the notes changed?

You have time till March 31 to change notes if you are willing to go to the specified RBI offices. This list will be announced later

What about ATMs? Any restrictions?

There will be a limit of Rs 2,000 per day per card from Thursday. This will progressively be increased to Rs 4,000 per day. Normal limits will be restored later

And bank accounts? Are there any restrictions?

There will be a withdrawal limit of Rs 10,000 per day and Rs 20,000 per week. This will be increased later. The restriction appears to have been put to prevent a run on banks

What about my driver and domestic help who do not have bank accounts and I have already paid them this month’s salary in cash?

You may have to replace those notes with new Rs 500 and Rs 2,000 notes. Banks will issue the new notes from November 10. New notes of Rs 1,000 will also be issued but later. If your driver or domestic help does not have a bank account, they need written permission from an acquaintance (you too) with an account to exchange the old notes. In such cases, the person has to approach with ID proof the bank in which the endorser has an account

Have notes been scrapped like this before?

Yes, in 1946 and 1978. The Morarji Desai government had scrapped Rs 1,000, Rs 5,000 and Rs 10,000 from the midnight of January 16, 1978.