On 8th November, the Government recalled all currency notes of Rs. 500 and Rs. 1,000 (OHD). These can be accepted at some merchants (Govt. Hospitals, petrol pumps, etc.) till 14-Nov. Limited amounts (Rs. 4,000) can be exchanged by individuals across bank counters on producing ID proof (Aadhar card). Larger amounts should be deposited back into your bank account.
This move has also started a panic among people hoarding OHD. Reportedly, they are offering large sums (in 500, 1000 rupee OHD notes) to charitable and religious organisations as donations. The thinking is that the currency can be deposited in NGO bank account, and then withdrawn later.
What to do if you receive such an offer? Deposits of OHD into NGO accounts must be backed by genuine book entries and donor details. Tax officers will also correlate this with deposit pattern in the past. If these do not match, they may levy high penalties of 200%+ for laundering of OHD.
You should therefore say NO to any such offers.
This move has also started a panic among people hoarding OHD. Reportedly, they are offering large sums (in 500, 1000 rupee OHD notes) to charitable and religious organisations as donations. The thinking is that the currency can be deposited in NGO bank account, and then withdrawn later.
What to do if you receive such an offer? Deposits of OHD into NGO accounts must be backed by genuine book entries and donor details. Tax officers will also correlate this with deposit pattern in the past. If these do not match, they may levy high penalties of 200%+ for laundering of OHD.
You should therefore say NO to any such offers.
