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Withdrawal of Legal Tender Character of Specified Bank Notes – Expanding the distribution locations for deposit and withdrawal of cash

RBI/2016-17/131
DCM (Plg) No. 1274/10.27.00/2016-17

November 14, 2016

The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks/ Foreign Banks
Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks/
District Central Cooperative Banks

Dear Sir,

Withdrawal of Legal Tender Character of Specified Bank Notes – 
Expanding the distribution locations for deposit and withdrawal of cash

Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. With a view to widen the existing facilities to exchange/ deposit the specified bank notes and withdraw cash from their accounts, banks are advised to put in place the following additional measures so that member public enjoy as much convenience as possible in availing the facility.

Additional Facilities.

i.            The current account holders (applicable to Current Accounts which are operational for last three months or more) are allowed to withdraw up to ? 50000 in a week. Such tenders will be disbursed predominantly in ? 2000 denomination only.

ii.            Banks may deploy their Micro ATMs (Bala Mitras, etc) near village Panchayat Offices, Police Stations/ Police and military Outposts, Government Departments, offices of Public Sector Units, Petrol Pumps and other similar secure locations. As it may entail larger volume of cash requirements, Banks may enhance the limits of the micro ATMs to at least ? 50,000 and allow frequent replenishment of cash to them.

iii.            For providing exchange / deposit/ withdrawal facility to people residing in remote/ unbanked areas, banks may consider using mobile vans.

iv.            Banks should, in a camp mode, open accounts for Tea/coffee and other plantation workers, employees of Sugar cooperatives, dairy farms and such other worker groups with concentrated payment locations so that they may be better served in terms of deposit into accounts and withdrawal therefrom.

v.            We reiterate that in order to cope with the increased work load banks may consider hiring retired employees for a short period.

Monitoring

vi.            Banks have to ensure that the customers use separate pay-in-slips for depositing specified bank notes and other legal tender bank notes.(If a depositor has a mixed bunch of SBN and legal tender notes, he has to segregate them and submit two separate Pay-in slips). Banks have to put in place, within CBS, a mechanism to maintain a record of receipts of SBNs customer-wise and denomination wise whether for exchange or for deposit by way of a flag to facilitate subsequent verification.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

 

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