PAN application : New procedure kept in abeyance

Government Decides to Keep in Abeyance the Decision to Change the Procedure for Pan Allotment Till Further Orders

The Central Board of Direct Taxes (CBDT) has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. Accordingly, the operation of Circular No. 11 dated 16.01.2014 issued to PAN service providers has been directed to be put on hold till further orders. In the meantime, the old procedure of PAN application and allotment shall continue.

Application for PAN : Change in procedure

Original documents to be shown
With effect from 03.02.2014 original Documents regarding proof of address and proof of residence to be shown in the PAN Facilitation Centre. Theses documents to be verified with the copies submitted alongwith PAN application Forms and be returned over the counter.
View the notification dated 24.01.2014

RBI to withdraw all pre 2005 currency note

The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.

The Reserve Bank of India (RBI) on Wednesday decided to withdraw all currency notes issued prior to 2005, including Rs. 500 and Rs. 1,000 denominations, starting March 31. The step was aimed at curbing black money and fake currencies in the country.

“From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication,” an advisory issued by the central bank on Wednesday said.

The size of India’s black economy is estimated to be about a third of its GDP. If hidden income of $500 billion (about 30 lakh crore) were to be disclosed and taxed at 33%, it would generate Rs. 10 lakh crore, enough to fund the food programme in the country for a few years. 

Identify the notes to be withdrawn

The RBI asked the public to exchange currency notes that do not display year of printing on the reverse side. “…public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.” The year of printing in a small font is visible at the middle of the bottom row in notes issued after 2005. 

View the RBI Press Release

Banks to charge fee for own ATM transaction ?

The Indian Banks' Association has suggested to the Reserve Bank of India that free use of automated teller machines (ATM) should be capped at just five transactions a month, including that of the bank in which the account is active. 

The recommendation follows overzealous state governments' order to banks to install security guards at all ATM booths after a woman banker was assaulted by a burglar in Bengaluru. 

"Even now, five free transactions are enough to meet the withdrawal requirements of most of the account holders. For balance enquiries, sms is a more convenient option," said M Tanksale, CEO of IBA, the lobby group. 

Now, there is no limit on the number of free transactions an account holder can do at the ATMs operated by the bank in which he has an account. 

Free transactions at ATMs operated by other banks are capped at five a month. The decision not to levy any charges on customers for doing transaction at their own bank ATMs has not been imposed by RBI on banks, but was an initiative taken by banks in a bid to reduce workload at branch and improve customer service. 

Source:-The Economic Times

Currency notes with anything written on them will be accepted as usual

In the wake of rumours circulating in the market that from January 1, 2014, banks will not accept banknotes with anything written on them, the Reserve Bank has urged members of public not to fall prey to such rumours and to use their banknotes without any fear. The Reserve Bank of India has clarified it has NOT issued any such instructions.
View RBI's clarification on Scribbling on Banknotes