Over-the-counter exchange of notes sees a moderate drop

People can withdraw up to Rs. 2.5 lakh for weddings from banks

There has been a moderate drop in over-the-counter exchange of the demonetised Rs. 500 and Rs. 1,000 notes in banks here since Thursday and bank officials here maintain that this may further drop in the days ahead. The kind of rush witnessed till Wednesday in banks for the exchange of the banned high-value notes was not seen on Thursday and Friday. Since November 10, a majority of people had exchanged the banned notes with banks which had extended their working hours to facilitate transactions of those standing in long queues. A senior bank official claimed that indelible ink applied on the fingers on those coming to exchange the cash cannot be cited as the sole reason for the drop in the number of people coming to the banks for cash exchanges.

Meanwhile, banks have received instructions to disburse up to Rs. 2.5 lakh to each family for marriage expenses on producing a proof such as wedding card to the banks. When contacted, Mysuru Lead Bank Manager K.N. Shivalingaiah confirmed to The Hindu about the new guideline and added that banks have been told to provide the cash as fixed by the Centre to the account holders upon production of proof of wedding. Families preparing for weddings had expressed their concern over difficulties in accessing cash towards meeting the expenses in view of the ceiling following demonetisation of Rs. 500 and Rs. 1,000 notes.

The Union government had relaxed the norms for weddings enhancing the withdrawal limit to each family at Rs. 2.50 lakh.

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Printable version | Apr 4, 2020 2:25:44 AM | https://www.thehindu.com/news/national/karnataka/Over-the-counter-exchange-of-notes-sees-a-moderate-drop/article16667980.ece

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