Demonetization: Here Are How Things Stand A Week After The Announcement
November 15th, 2016
Almost a week after Prime Minister Narendra Modi announced demonetization of Rs 500 and Rs 1,000 notes, a wave of confusion has hit the public, with a large number of people fearing that their existing money is useless. Queues outside ATMs and banks are only getting longer with people waiting to replace their notes and to withdraw money for their daily survival.
Several norms that were earlier declared to mitigate the problem of cash distribution have been modified in the last few days. Here are the latest developments that everyone should be aware of:
- All transaction charges at the ATMs have been waived for customers. This is applicable for transactions at the ATMs where customers hold the account, and other ATMs too.
- The government has extended the usage of existing Rs 500 and Rs 1,000 notes for select transactions till November 24, 2016. The earlier deadline for the same was November 14. Under this, people will be able to use these notes to pay for medicines at government hospitals and private medical shops, to get essential items like LPG cylinders from government-run cooperative shops, to buy railway, metro, and air-tickets from the ticket counters, at milk booths, petrol stations, burial grounds, international airports, and to pay court fees till November 24. The use of Rs.500 and Rs.1,000 notes has also been allowed for foreign tourists. This means that if any of the above mentioned places are not accepting old notes till November 24, it is against the government’s order.
- From Sunday, November 13, the government has allowed for higher withdrawal and exchange limits to make the transition easier. Customers can now exchange Rs 4,500 for old bank notes at bank counters, compared to the existing ceiling of Rs 4,000. The limit on cash withdrawals from ATMs has also been increased to Rs 2,500 from Rs 2,000.
- The weekly cash withdrawal limit from bank accounts of Rs 20,000 has been raised to Rs 24,000.
- The cash withdrawal limit of Rs 10,000 per day from banks has been removed. People can also withdraw from any branch of their banks (in different cities as well).
- Economic affairs secretary Shaktikanta Das said recalibration of ATMs has already started and they will start dispensing the new Rs 2,000 currency notes from Tuesday.
- He also announced that indelible ink like the one used during elections will be used in Banks and ATMs to ensure people trying to convert black money to white money through multiple small transactions can not make further deposits/withdrawals. This will also help reduce the crowds.
- A large number of micro-ATMs will also be deployed to help people withdraw cash.
- Toll charges at all national highways across the country have been suspended till November 18, midnight.
- Parking charges at all airports across the country have been suspended till November 21, midnight.
Also, several false reports are circulating on social media that Rs 5 lakh can be withdrawn from a person’s account for wedding preparations if they get the wedding card verified by the DCP of the area. No such statement has been issued by the RBI.
These are new rules as per the latest updates and reports from the government.
The Logical Indian urges the readers not to panic. It is a reminder to all of those who are thinking that having Rs 500 and Rs 1,000 notes is useless. There is time till December 30 to exchange your notes. We also urge you to help those who are unable to fill forms or understand the processes, and make the experience easier, faster, and better for all involved.