What to Do with Banned 500 and 1000 Rupee Notes

The demonetization of 500 and 1000 rupee notes in India has left many with a dilemma: how to dispose of or store these now-illegal notes. Here are detailed guidelines and considerations for dealing with your old currency.

Possession of Banned Notes

As of the 2018 date, the 500 and 1000 rupee notes are illegal to possess, unless you keep them in small quantities for collectible reasons. These notes can no longer be used for transactions and may lead to legal proceedings if found. If you currently hold these notes, it's advisable to keep only a limited number, such as 5 to 10 of each type for future generations, such as your great-grandchildren.

Time for Valuation

According to the timeline provided, in about 40 to 50 years, these old notes and coins will attain a collectors value. The older they are, the more valuable they become. So, if you plan to keep them, store them safely in a cover to maintain their condition.

How to Exchange or Hand Over Banned Notes

If you find yourself in a situation where you need to exchange or hand over your banned notes, you can do so by visiting the head office of the Reserve Bank of India (RBI) at the following address:

6 Sansad Marg, New Delhi, Delhi 110001

When you visit, explain to the authorities that you were unable to exchange the notes due to reasons such as being out of the country or in a hospital. You will need to provide proof of your circumstances.

Alternative Disposal Methods

If you are unable to resolve the issue of possession, here are some alternative ways to handle the notes:

Burn Them: In most cases, burning the notes is considered a disposal method. However, there are some exemptions to this rule. For instance, recently exchanged notes that were confiscated as part of a judicial process and returned to the owner are now legal. Play with Them: You can use the notes for creative purposes, such as making paper boats or selling them to currency collectors, provided you have a legitimate collector interested in them. Use Them Wisely: If you wish to use these old notes for a creative purpose, consider using them for paper crafts or as a souvenir to pass down to future generations. Alternatively, you can use them to wipe your hands, though this is not a recommended practice.

Valuable Memories and Future Antiques

These old notes serve as a tangible reminder of the historic event of demonetization. You may choose to keep them as a treasured object to share with future generations, recounting the thrilling story of how these notes once held significant value in circulation. They can also be creatively transformed into new and valid currency notes, a magical and symbolic process if you so desire.