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But in case of non compliance, the penalty would be raised to 60 per cent, in addition to the tax required to be paid. [Representational Image]Reuters file photo

The Reserve Bank of India has ordered all banks to remain open throughout the weekend in order to let people who hold the current Rs 500 and Rs 1,000 currency notes exchange them in lieu for legal tender. The move comes just two days after Prime Minister Narendra Modi scrapped the currency notes as legal tender.

The Reserve Bank of India (RBI), in a letter to the chairmen, managing directors and chief executive officer of public sector and private sector banks, foreign banks, small finance banks, regional rural banks, local area banks and all cooperative banks said that they should remain open over the weekend -- November 12 and 13 -- in order to facilitate the exchange of currency notes. Here's how you can go about it.

It may be noted that banks have already said they will be working longer hours in order to help people exchange their currency notes.

RBI notification

The RBI, in the aforementioned letter, has said: "In order to meet the anticipated heavy demand from members of public to conduct their banking transactions, it has been decided that banks shall remain open for public transactions on Saturday, November 12 and Sunday, November 13, 2016."

It has also said: "Banks are advised to keep all their branches open on November 12 and 13, 2016, as regular working days for transacting all business. Banks may give due publicity about availability of banking services on these days."

'Top priority'

In another letter to the banks, the RBI has said: "Banks have to accord top priority to provide facility for exchanging and accepting deposits of specified bank notes and open additional counters to meet the public demand and keep the counters open for extended hours, if necessary. Maximum staff should be deployed for this purpose. If necessary banks may consider hiring retired employees for a temporary period to take care of additional work load."

It has also said: "The specified bank notes of aggregate value of Rs 4,000 or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity."

These include Aadhaar Card, driving licence, voter ID card, passport, NREGA Card, PAN Card or any identity card issued by a government department or public sector unit to its staff.

Withdrawals and other transactions

The RBI also said: "Cash withdrawal from a bank account over the counter shall be restricted to Rs 10,000 per day subject to an overall limit of Rs 20,000 a week from the date of the notification until the end of business hours on November 24, 2016, after which these limits shall be reviewed."

However, "there shall be no restriction on the use of any non-cash method of operating the account of a person, including cheques, demand drafts, credit or debit cards, mobile wallets and electronic fund transfer mechanisms or the like," it added.

ATM withdrawals

The RBI has also said: "Withdrawal from ATMs shall be restricted to Rs 2,000 per day per card up to November 18, 2016, and the limit shall be raised to ₹ 4,000 per day per card from November 19."