Demonetisation: Rules and revisions since 8 November

The Modi government and the RBI have since taken a slew of measures since the 8 Nov demonetisation announcement. Here’s a guide


Prime Minister Narendra Modi shocked the country on 8 November by the demonetisation of Rs500 and Rs1,000 notes. Photo: Pradeep Gaur/Mint
Prime Minister Narendra Modi shocked the country on 8 November by the demonetisation of Rs500 and Rs1,000 notes. Photo: Pradeep Gaur/Mint

Mumbai: Prime Minister Narendra Modi shocked the country on 8 November by the demonetisation of Rs500 and Rs1,000 notes, which accounted for 86% of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India’s cash economy to a virtual standstill.

The government and the Reserve Bank of India (RBI) have since taken a slew of measures to manage the shortage of cash in the economy as a result of demonetisation. They are detailed below:

25 November

- RBI says old currency notes can be exchanged at RBI branches

24 November

- Government stops over the counter exchange of old banknotes; can only be deposited

- Government to ensure adequate cash supply for pensioners, armed forces personnel

- Allows certain payments in old 500 rupees notes including at tolls, hospitals for limited time

ALSO READ: Here’s where your old Rs 500 notes are still being accepted

23 November

- Government says will offer Rs210 billion in farm credit to farmers

22 November

- RBI sets balance kept in prepaid wallets, cards (PPIs) at 20,000 rupees from 10,000 til 30 December

- Merchants can transfer up to Rs50,000 from PPIs to banks til 30 December

- Monthly limits on transactions via PPIs raised to Rs20,000 for 10,000 till 30 December

- RBI asks state-run Nabard to disburse up to Rs230 billion for crop loans

21 November

- RBI allows cash withdrawal of up to Rs250,000 for wedding-related expenses

ALSO READ: Modi cabinet discusses income tax penalty on large deposits

- RBI allows farmers to withdraw up to 25,000 rupees a week from their loan, deposit accounts

- RBI gives small borrowers 60 more days before loans of up to Rs10 million are marked substandard

- Government allows farmers to purchase seeds from state-run outlets with old Rs500 notes

18 November

- RBI sets limit of cash withdrawal at card swiping machines at Rs2,000 per day

17 November

- Government allows farmers to withdraw up to Rs25,000 a week against the crop loans

- Government extends time limit for farmer to pay crop insurance premiums by 14 days

- Cuts limit for over-the-counter exchange of old bills at banks to Rs2,000 from 4,500

15 November

- Government says banks must use indelible ink to ensure people change cash only once

14 November

- Extends deadline for payments in old notes including for petrol for limited time

13 November

- RBI raises cap on weekly cash withdrawals from banks to Rs24,000 from 20,000

- Removes per-day withdrawal limit cap of Rs10,000

- Raises limit for over-the-counter exchange of old bills at banks to Rs4,500 from 4,000

- Waives ATM fees for all transactions by savings bank customers till 30 December

- Government increases withdrawal limits at recalibrated ATMs to Rs2,500 per day from 2,000

11 November

- Extends deadline for payments in old notes including for petrol for limited time

8 November

- India abolishes Rs500, Rs1,000 notes in fight against ‘black money’

- Rs500, Rs1000 notes must be tendered into banks, RBI by 30 December

- Caps exchange of old bills over-the-counter at banks at Rs4,000

- Caps cash withdrawals from bank accounts at Rs10,000 per day till 24 November

- Caps cash withdrawals from bank accounts at Rs20,000 per week till 24 November

- Caps cash withdrawals from ATMs at Rs2,000 per day per card till 18 November

- Caps cash withdrawals from ATMs at Rs4,000 per day per card from 19 November

- Allows certain payments in old notes including for petrol for limited time

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