Banks disburse Rs30,000 crore in 3 days

Indian Banks’ Association appealed to the public to use alternative modes of payments like debit and credit cards


From 10 November, customers are allowed to exchange up to Rs4,000 in cash at any bank branch with valid identity proof. Photo: PTI
From 10 November, customers are allowed to exchange up to Rs4,000 in cash at any bank branch with valid identity proof. Photo: PTI

Mumbai: Post withdrawal of Rs500 and Rs1,000 notes, banks have disbursed nearly Rs30,000 crore cash in bills of lower denominations and the newly-introduced Rs2,000 currency over the past three days, the apex body for lenders said on Sunday.

The government on 8 November demonetized Rs500 and Rs1,000 notes in a step to curb black money. Following the move, banks were closed on 9 November to stock lower value notes and exchange the defunct ones.

“In the last three days of working, nearly Rs30,000 crore cash has been disbursed in currency notes of lower denominations and newly introduced Rs2,000 notes. The ATMs are being recalibrated to handle new Rs500 and Rs2,000 notes,” Indian Banks’ Association (IBA) said in a statement.

From 10 November, customers are allowed to exchange up to Rs4,000 in cash at any bank branch with valid identity proof. They can also withdraw cash against withdrawal slip or cheque, subject to ceiling of Rs10,000 a day, within an overall limit of Rs20,000 in a week (including withdrawals from ATMs) up to 24 November, after which these limits shall be reviewed.

IBA said the banks are making all-out efforts to ensure currency requirements of customers are met within the limits prescribed by the Reserve Bank of India. It, however, appealed to the public to use alternative modes of payments like debit and credit cards.

“In addition, payments could be made through electronic channels like RTGS (real-time gross settlement systems), NEFT (national electronic funds transfer), IMPS (immediate payment service), net banking, UPI (unified payments interface). Electronic wallets provided by banks may also be used extensively for making payments,” it suggested. PTI

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