December 10, 2016
Mumbai: Prime Minister Narendra Modi shocked the country on 8 November by abolishing Rs 500 and Rs 1,000 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.
December 10, 2016
Mumbai: Prime Minister Narendra Modi shocked the country on 8 November by abolishing Rs 500 and Rs 1,000 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.
Cash withdrawal and transaction rules as of 10 December: The demonetization move was aimed at cracking down on black money, but has brought the Indian economy to a virtual standstill.
The government and the Reserve Bank of India have since taken a slew of measures—including cash withdrawal limits at ATMs and online transactions—to ease the pain from its measures. They are detailed below in chronological order.
8 December
—Govt announces incentives on retail purchases of some products on cashless transactions
7 December
—RBI withdraws temporary order for banks to place deposits under cash reserve ratio.
2 December
—Govt raises limit for market stabilisation bonds to Rs6 trillion to absorb extra liquidity
1 December
—Govt says old Rs500 notes can no longer be used at petrol stations, airline ticket counters
30 November
—RBI allows banks to use all cash to meet hiked cash reserve requirement ratio
—RBI tightens monthly cash withdrawal rules from Jan Dhan accounts for poor
28 November
—Govt announces tax amnesty scheme for unreported cash; will charge 50% in taxes, surcharges
—People would also have to park quarter of total sum in non-interest bearing deposit for 4 years
—RBI to allow cash withdrawals above Rs24,000 weekly limit of deposits made in legal tender.
—Those withdrawals would be in new Rs2,000, Rs500 currency notes
26 November
—RBI says orders banks to place 100% of deposits between September-November under cash reserve ratio
25 November
—RBI expands basket of securities that can be accepted for collateral under money market operations
—RBI says old currency notes can be exchanged at RBI branches
—RBI says tourists can exchange foreign currency worth up to Rs5,000 per week till 15 December
24 November
—Govt stops over the counter exchange of old banknotes; can only be deposited
—Govt to ensure adequate cash supply for pensioners, armed forces personnel
—Allows certain payments in old Rs500 notes including at tolls, hospitals for limited time
23 November
—India govt says will offer Rs21,000 crore in farm credit to farmers
22 November
—RBI sets balance kept in prepaid wallets, cards (PPIs) at Rs20,000 from Rs10,000 till 30 December
—Merchants can transfer up to Rs50,000 from PPIs to banks till 30 December
—Monthly limits on transactions via PPIs raised to Rs20,000 from Rs10,000 till 30 December
—RBI asks state-run Nabard to disburse up to Rs23,000 crore for crop loans
21 November
—RBI allows cash withdrawal of up to Rs250,000 for wedding-related expenses
—RBI allows farmers to withdraw up to Rs25,000 a week from their loan, deposit accounts
—RBI gives small borrowers 60 more days before loans of up to Rs1 crore are marked substandard
—Govt 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
—Govt allows farmers cash withdrawals up to Rs25,000 a week against the crop loans
—Govt 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 Rs4,500
15 November
—Govt 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 Rs20,000
—Removes per-day cash withdrawal limit cap of Rs10,000
—Raises limit for over-the-counter exchange of old bills at banks to Rs4,500 from Rs4,000
—Waives ATM fees for all transactions by savings bank customers till 30 December
—Govt increases cash withdrawal limits at recalibrated ATMs to Rs2,500/day from Rs2,000
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
Courtesy: Reuters
