**Summary:**
This circular, RBI/2016-17/155 DCM (Plg) No.1391/10.27.00/2016-17, issued by the Reserve Bank of India (RBI) on November 24, 2016, announces the discontinuation of over-the-counter exchange of Specified Bank Notes (SBNs) – referring to the withdrawn 500 and 1000 bank notes – effective after midnight of November 24, 2016. This follows the earlier circular DCM (Plg) No.1302/10.27.00/2016-17 dated November 17, 2016, regarding the withdrawal of the legal tender status of these notes. The circular instructs all Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Urban Cooperative Banks, and State Cooperative Banks to encourage the public to deposit SBNs into their bank accounts instead of exchanging them over the counter. Furthermore, banks are directed to facilitate the opening of new accounts for individuals who are unbanked. The circular is signed by P. Vijaya Kumar, Chief General Manager of the RBI.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here by its abbreviation RBI.
DCM Plg No.1391/10.27.002016-17: Reference number of the RBI circular.
Public Sector Banks: Banks in India with majority government stake.
Private Sector Banks: Banks in India that are privately owned.
Foreign Banks: Banks with headquarters in other countries but operating in India.
Regional Rural Banks: Regional Rural Banks in India.
Urban Cooperative Banks: Urban Cooperative Banks in India.
State Cooperative Banks: State Cooperative Banks in India.
Specified Bank Notes: SBN refers to Specified Bank Notes, which are the 500 and 1000 Indian Rupee notes demonetized at the time.
P Vijaya Kumar: Chief General Manager at RBI who signed the circular.
RBI/2016-17/155
DCM (Plg) No.1391/10.27.00/2016-17 November 24, 2016
The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks
Dear Sir,
Discontinuation of over the Counters Exchange of SBN
Please refer to our circular DCM (Plg) No.1302/10.27.00/2016-17 dated November
17, 2016 on “Withdrawal of Legal Tender Character of existing ` 500 and ` 1000
Bank Notes – Exchange over the counters”.
2. On a review it has since been decided that no over the counter exchange (in cash)
of SBNs will be permitted after midnight of November 24, 2016.
Members of public who approach the banks for over the counter exchange of SBN
may be encouraged to deposit SBNs into their bank accounts.
3. Banks may ensure to facilitate opening of new accounts for unbanked people.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager