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Business News/ Industry / Banking/  RBI notifications on demonetisation since 8 November

RBI notifications on demonetisation since 8 November

A timeline of the announcements that RBI made after 8 November on demonetisation rules

A file photo of the RBI headquarters in Mumbai. Photo: Aniruddha Chowdhury/MintPremium
A file photo of the RBI headquarters in Mumbai. Photo: Aniruddha Chowdhury/Mint

Mumbai: The Reserve Bank of India (RBI) has made several announcements ever since the demonetisation of Rs500 and Rs1,000 notes was announced by Prime Minister Narendra Modi on 8 November. The RBI has periodically changed the rules on cash withdrawal and deposits at banks through the notifications.

Here’s a timeline of the RBI notifications to help you keep abreast of the rules:

8 November

■ RBI issues enabling instructions to banks after Prime Minister Narendra Modi’s announcement on demonetisation.

■ RBI asks banks to allow exchange of old notes up to Rs4,000, over-the-counter (OTC) withdrawal of up to Rs10,000 per day aggregating to Rs20,000 per week, limit ATM transactions to Rs2,000 per day per card, which would then be raised to Rs4,000 from 19 November.

■ RBI puts up FAQs (frequently asked questions) on its website asking the public to be calm, saying that exchange of old notes will be available till 30 December.

■ RBI says that banks and ATMs would be shut on 9 November.

9 November

■ RBI issues guidelines around ATM recalibration to ensure Rs500 and Rs1,000 notes are not dispensed to public.

■ RBI asks banks to ensure that adequate Rs100 notes are available to ATM companies.

■ RBI asks banks to keep branches open on 12 November (Saturday) and 13 November (Sunday) as regular working days.

10 November

■ RBI clarifies that daily OTC limit of Rs10,000 is not applicable on withdrawals by interbank transfers, post offices, airport money changers and white label ATM manufacturers.

■ RBI says payment systems such as NEFT (National Electronic Funds Transfer), RTGS (Real-time gross settlement systems) and cheque clearing will remain open on 12 and 13 November.

11 November

■ RBI asks banks and other financial services companies to offer pre-paid instruments to foreign tourists in exchange of foreign exchange tendered.

■ RBI asks banks to monitor and report amounts debited to bank accounts and instances of counterfeit notes while exchanging.

■ RBI says government departments may be allowed to withdraw more than Rs10,000 a day OTC, after submitting request in writing and at the discretion of branch officer.

■ RBI issues statement reassuring the public at large about availability of cash in the banking system, asks them to maintain patience and exchange currency at convenience.

12 November

■ RBI urges public to utilise alternative payment facilities.

13 November

■ RBI revises daily exchange limit to Rs4,500, ATM withdrawal limit to Rs2,500 and weekly OTC withdrawal limit to Rs24,000.

■ RBI asks banks to make separate queues for old and disabled bank customers.

■ RBI asks banks to monitor and report daily withdrawals by bank account holders at ATMs and OTC.

14 November

■ RBI asks banks to waive ATM charges on withdrawals between 10 November and 30 December.

■ RBI constitutes task force to oversee recalibration and reactivation of ATMs, under deputy governor S.S. Mundra.

■ RBI allows current account holders to withdraw up to Rs50,000 a week, all in Rs2,000 denomination notes.

■ RBI allows banks to hire retired employees for a short period of time to reduce work load at branches.

■ RBI asks banks to open bank accounts for workers at plantations, sugar cooperatives, dairy farms and other such groups.

■ RBI asks banks to use mobile vans to allow exchange, deposit and withdrawal services in unbanked areas.

15 November

■ RBI asks banks to use indelible ink on right index finger of customers who have exchanged cash at their counters, to avoid repeated requests.

16 November

■ RBI asks banks to collect PAN (permanent account number) details of customers depositing more than Rs50,000 in bank accounts not seeded with PAN.

17 November

■ RBI revises limit for OTC exchange to Rs2,000, available only once to a person.

■ RBI reiterates the availability of cash and asks customers to maintain patience and not hoard cash.

18 November

■ RBI allows merchants to enable withdrawal facility of up to Rs2,000 per day at their point of sale terminals, without any charges.

20 November

■ RBI refuses to change ATM withdrawal limits from Rs2,500.

21 November

■ RBI announces that banks have received Rs5.44 trillion worth old high-denomination notes through deposits and exchange services.

■ RBI allows farmers to withdraw up to Rs25,000 a week from their loan or deposit accounts.

■ RBI allows traders registered with APMC (agricultural produce market committee) and mandis to withdraw up to Rs50,000 a week from their current accounts as well.

22 November

■ RBI enhances limits on prepaid payments services providers to load up to Rs20,000, instead of Rs10,000 before.

23 November

■ RBI asks banks to not accept demonetised notes in small savings schemes.

24 November

■ RBI discontinues old currency exchange services at banks and allows it only at RBI counters.

■ RBI asks banks to ensure adequate cash supply for pensioners and armed forces personnel.

■ RBI asks banks to use the deposit guarantee facility to move old currency notes from branches and decongest them.

25 November

■ RBI allows exchange of up to Rs5,000 per week for foreign tourists visiting India.

■ RBI reiterates weekly withdrawal limit of Rs24,000.

26 November

■ RBI asks banks to maintain 100% cash reserve ratio on deposits garnered between 16 September and 11 November to manage excess liquidity.

27 November

■ RBI introduces district-level deposit guarantee scheme for branches to maintain old high-denomination notes they have.

28 November

■ RBI states that banks have garnered old high-denomination currency notes worth Rs8.45 trillion in deposits and exchange services from 10-27 November.

■ RBI allows withdrawals beyond the Rs24,000 weekly limit to the limit of customers deposit legal tender in their bank accounts.

30 November

■ RBI limits withdrawals from Jan Dhan accounts to Rs10,000 per month.

■ RBI allows higher withdrawals from Jan Dhan accounts at the discretion of branch managers.

1 December

■ RBI warns banks to not consider any fake guidelines being circulated in social media and only refer to the central bank’s website for clarity.

2 December

■ RBI announces revision of ceiling under market stabilisation scheme (MSS) to Rs6 trillion from Rs300 billion to manage excess liquidity.

■ RBI advises large banks to equally distribute currency notes in their currency chests to their own branches and other smaller banks.

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Published: 08 Dec 2016, 07:49 AM IST
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