BackRs500, Rs1,000 notes ban: Key rules changed for cash withdrawals, exchange
Amid a nationwide scramble for cash, the government on Monday said that the new Rs2,000 notes will be available in some ATMs from Tuesday
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Nearly a week after the Narendra Modi government withdrew Rs500 and Rs1,000 notes as part of a crackdown against black money and corruption, queues outside banks and ATMs have only got longer as people look to replace their now-redundant currency notes.
A look at important moves by the government to mitigate the cash crunch as a huge volume of currency notes are taken out of the financial
1. Banks have waived ATM charges on all transactions after a request by the government
2. The government has extended the usage of existing Rs500 and Rs1,000 notes for select transactions till 24 November from the earlier deadline of 14 November.
3. The limit of Rs4,000 for over the counter exchange has been increased to Rs4,500. The cash limit of ATMs enhanced to Rs2500 from Rs2000.
4. The weekly cash withdrawal limit from bank accounts of Rs20,000 has been enhanced to Rs24,000. The cash withdrawal limit of Rs10,000 per day has been removed.
5. The government has also raised the cash withdrawal limit of at least three-month old current accounts to Rs50,000 per week
6. Economic affairs secretary Shaktikanta Das said recalibration of ATMs has already started and they will start dispensing the new Rs2,000 currency notes from Tuesday.
7. Time limit for submitting annual life certificate for pensioners have been extended to 15 January 2017.
Besides these rules, the government is also taking various steps to help people get rid of the cash crunch
8. A large number of micro-ATMs will be deployed to help people withdraw cash through debit cards, Shaktikanta Das said.
9. The supply of cash to branch post offices has been enhanced to facilitate cash withdrawals from postal accounts.
10. Reserve Bank of India (RBI) has set up a task force under deputy governor S.S. Mundra to oversee the recalibration of ATM machines after the country introduced new banknotes to replace old Rs500 and Rs1,000 notes.
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