The Central government has asked banks to raise daily exchange limit of old Rs 500 and Rs 1,000 notes to Rs 4,500 from the existing Rs 4,000.
ATM cash withdrawal limit has also been increased to Rs 2,500 from Rs 2,000 per day; while weekly withdrawal limit has been raised from Rs 20,000 to Rs 24,000, the Finance Ministry said on Sunday evening.
The cap of Rs 10,000 on daily withdrawal has also been removed.
The Centre has also extended the last date for submission of the annual life certificate for the pensioners from November to January 15.
Banks have been asked to make separate queues for senior citizens and physically challenged.
The government on November 8 demonetised Rs 500 and Rs 1,000 notes in a step to curb black money. Following the move, banks were closed on November 9 to stock lower value notes and exchange the defunct ones.
‘Banks have been advised to increase the issuance and use of mobile wallets and debit/credit cards as also to provide them to those customers and establishments not having access to these non-cash means of payment,’ it said.
Also, the last date for submission of the annual life certificate for the government pensioners which is to be submitted in November every year has been extended up to January 15, 2017. Finance Ministry this evening reviewed the position regarding availability and distribution of notes of all denominations in different parts of the country.
Instructions have been issued to the banks and post offices to ensure proper distribution of all notes, including those of smaller denominations, up to the last mile through mobile banking vans and Banking Correspondents to ease pressure.
While the old Rs 500 and Rs 1,000 currency notes were demonetised from the midnight of November 8, a brand new Rs 2,000 note was introduced on November 10.
“In the first four days (from November 10th to 13th , up to 5 pm ), about Rs 3 lakh crore of old Rs 500 and 1,000 bank notes have been deposited in the banking system and about Rs 50,000 crores has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATMs or by exchange at the counter,” the statement said.
Within three four days, the banking system has handled about 21 crore transactions.
Further based on the review of the reports received from the States, banks and other sources, the ministry decided that continuous coordination is to be done with RBI, banks and post offices to make all denomination notes available at all locations.
‘Instructions have been given to the banks and post offices to ensure proper distribution of all denomination notes. Banks have also been especially advised to ensure the availability and distribution of small denomination notes,’ it said.
Also, chief secretaries of the states have been asked to identify the rural pockets where availability of cash has been a problem and provide all support to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and BCs, the statement said.
‘It has been reported that certain business houses viz. hospitals, caterers , tent houses etc. are not accepting Cheques/Demand Drafts and online payment transfer from customers. It is advised that in such cases customer can make a complaint to the concerned District Magistrates/District Administration for action against such establishments,’ the statement said.
All banks have been advised to arrange mobile banking vans to the extent possible at major hospitals to carry out emergency banking transaction for patients.
Banks have also been asked to make arrangements for separate queues for senior citizens and physically handicapped. Separate queues will also be arranged for exchange of cash to cash and transactions against bank accounts.
‘State governments have been requested to facilitate opening of new bank accounts as a part of financial inclusion programme,’ the statement added.
Meanwhile, post withdrawal of Rs 500 and Rs 1,000 notes, banks have disbursed nearly Rs 30,000 crore cash in bills of lower denominations and the newly-introduced Rs 2,000 currency over the past three days, the apex body for lenders said on Sunday.
‘In the last three days of working, nearly Rs 30,000 crore cash has been disbursed in currency notes of lower denominations and newly introduced Rs 2,000 notes. The ATMs are being recalibrated to handle new Rs 500 and Rs 2,000 notes,’ Indian Banks’ Association said in a statement.
The IBA said the banks are making all-out efforts to ensure currency requirements of customers are met within the limits prescribed by the Reserve Bank of India.
It, however, appealed to the public to use alternative modes of payments like debit and credit cards.
‘In addition, payments could be made through electronic channels like RTGS (real-time gross settlement systems), NEFT (national electronic funds transfer), IMPS (immediate payment service), net banking, UPI (unified payments interface). Electronic wallets provided by banks may also be used extensively for making payments,’ it suggested.
