RBI keeps swap window for Rs500 and Rs1,000 notes open

Holders of banknotes in Rs500 and Rs1,000 denominations, whose legal tender status has been withdrawn, can exchange these at the counters of the Reserve Bank of India (RBI) up to the current limits per person, RBI said in a website release.

RBI, however, has advised public that such exchange facility will no longer be available at bank counters.

''On a review, it has since been decided that no over the counter exchange (in cash) of SBNs will be permitted after midnight of 24 November 2016. Members of public who approach the banks for over-the-counter exchange of specified bank notes may be encouraged to deposit such SBNs into their bank accounts.

Holders of demonetised currency notes can deposit the notes in their bank accounts. For those who do not have a bank account so far, RBI has advised banks to facilitate opening of new accounts for the unbanked so as to ease the problem created by demonetisation.

RBI has noted that demand for cash is expected from government officials and pensioners after the electronic payment of their salary / pension and has advised banks to take appropriate steps in order to meet this likely demand for cash by ensuring adequate cash availability for taking care of the requirements of pensioners and also ensuring adequate supply at the military outposts for the cash requirements of the armed forces personnel.

Meanwhile, two variants of the new Rs500 notes have created confusion in the minds of the public over the acceptability of the new notes. The central bank, however, said the printing defect has been due to the rush for printing of new notes.

"It is likely that notes with printing defects have got released due to rush," RBI spokesperson said

Different variants can create confusion in the minds of the citizens. Experts also warned that it could aid counterfeiting - countering which was one of the top aim of demonetisation

"It is likely that notes with printing defect has got released due to the current rush. However, people can freely accept such a note in transaction or return it to RBI," RBI spokesperson Alpana Killawala, said.