Updated rules on withdrawal and exchange of currency

It has been 10 days since government announced the demonetisation policy, one of India’s biggest economic reforms.

The move has been praised by many, but its execution has faced many challenges.
Considering the hardships being faced by cash strapped common man, who is finding it difficult to meet his daily needs without money, government has made multiple announcements since the first day, revising some key guidelines issues on day one.

This is where we stand today, when it comes to norms around exchange of old
currency, withdrawal of money from bank and ATMs.

Demonetisation a great move weakened by bad execution

1. You can get Rs 2,000 cash from select petrol pumps With a view to ease the rush at ATM’s and banks, this move was initially suggested by the All India Petroleum Dealers Association. The provision allows you to swipe debit card at a petrol pump run by state owned oil companies and get cash worth the value of transaction (maximum Rs 2,000). The facility will initially be available at 2,500 petrol pumps across the country that have card swipe machines from State Bank of India, the country’s largest bank. Over the
next three days, the acility will be extended to 20,000 outlets that have card swipe machines from HDFC Bank, Citibank and ICICI Bank.

2. Withdrawal limit from a ‘current account’ raised to Rs 50,000 per week Considering the needs and requirement of business community, small traders, the government has raised the withdrawal limit from ‘current account’ to Rs 50,000.

3. Weekly withdrawal limit from savings account increased to Rs 24,000. The weekly limit of Rs 20,000 for withdrawal from savings account has been increased to Rs 24,000. The maximum limit of Rs 10,000 per day on such withdrawals has been waived, so you can now withdraw up to Rs 24000 in a single visit to the bank.

4. ATM : Per day cash withdrawal limit raised to Rs 2,500 The government has raised the cash withdrawal limit from Rs 2,000 per card, per day to Rs 2,500 per card, per day. This higher cash withdrawal limit is available only at recalibrated ATMs which will dispense one high security Rs.2,000 note and rest in the lower denomination. ATMs which have not been upgraded will continue to dispense Rs 2,000 per card.

5. Cash deposits totalling Rs 2.5 lakh must carry PAN As per the latest government notification, till December 30, PAN card will be mandatory if combined cash deposits in an account exceed Rs 2.5 lakh.

Previously, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision. But later government issued a notification saying multiple deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in multiple batches of less than Rs 50,000 each and escape mentioning the PAN.

6. Exchange of old notes now only up to Rs 2,000 Government has reduced counter exchange of old Rs 500, Rs 1,000 notes from Rs 4,500 to Rs 2000 starting from today.

7. Advance salaries for central government employees up to Group C level for Rs 10,000
Central government employees up to Group ‘C’ can draw salary advance up to
Rs 10,000 in cash that’ll be adjusted against their November salaries.

8. Withdrawal limit of Rs 2,50,000 sanctioned for marriage purpose With a view to ease the hardships of those tying the nuptial knot, government has allowed up to Rs 2.5 lakh cash withdrawal from KYC compliant bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.

9. Rs 500 and Rs 1,000 notes valid for key utilities, hospitals & petrol pumps till November 24 Government has extended the date of accepting old currency notes of Rs 500 and Rs 1000 for certain categories till November 24. This includes: payments towards fees, charges, hospital bills, petrol pumps, taxes and penalties payable to the central and state governments including municipal and local bodies. Old currency notes will also be accepted for making payment of utility charges for water and electricity, etc.

10. Farmers allowed to withdraw up to Rs 25,000 per week against crop loans Government has allowed farmers to withdraw up to 25,000 rupees per week against their crop loans. Besides, it has also extedned the time limit to pay crop insurance premiums by 15 days.

Source : News Articles

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