What happens to demonetised Rs 500 and Rs 1000 notes?

Demonetised Rs 500 and Rs 1,000 notes, which have been counted and processed for genuineness, are shredded and briquetted before being disposed of through a tendering process, the RBI has said. The central bank had earlier estimated the value of old Rs 500 and Rs 1,000 notes received, as on June 30, 2017, at Rs 15.28 trillion.

When was the plan to demonetise the ₹500 note initiated?

The plan to demonetise the ₹500 and ₹1,000 banknotes was initiated between six and ten months before it was a report by the State Bank of India (SBI) analysed possible strategies and effects of demonetisation. In May 2016, the Reserve Bank of India had started preparing for new banknotes and confirmed the design of ₹2,000 banknotes in August 2016.

Why is the availability of 500 rupees in the market limited?

Every note/ coin with drawn by the government increases in value. In case of 500 rupees majority of them is returned to the government. Hence the availability of 500 rupees in the market will be very very less. Ah you must be wondering who needs them?

Can I exchange my old INR 500 and 1000 notes?

Given the current situation, only if Supreme Court opens the window for exchanging of old notes, or Govt gives a rethink on it, you may then exchange it, the probability of both of them remains very remote. Originally Answered: I have some 500 and 1000 INR notes which the government declared void.

How much of demonetised notes have been returned to banks?

In its annual report for 2016-17 released on August 30 last year, the RBI said Rs 15.28 lakh crore, or 99 per cent of the demonetised notes, had returned to the banking system. The central bank said in the report, for the year ended June 30, 2017, that only Rs 16,050 crore of the Rs 15.44 lakh crore in old high denomination notes had not returned.

What happens to old notes in India?

Old currency notes are counted and processed in sophisticated currency verification and processing system. The notes are then shredded and briquetted Demonetised notes will be shredded and briquetted, the RBI said in an RTI reply.

Can I exchange 500 rupees notes in India now?

According to the Reserve Bank of India, the Indians cannot exchange 500 notes after 30 Dec 2016 but if you are a Non-Residential Indian (NRI), then you can exchange 1000 & 500 notes from till June 30,2017. You can not exchange now. Time is over.