BackDemonetisation: 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
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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 ₹ 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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