Add Rs. 500 more to daily budget

The new Rs.500 note that has been issued by the Reserve Bank of India.— Photo: Shashi Ashiwal

The new Rs.500 note that has been issued by the Reserve Bank of India.— Photo: Shashi Ashiwal  

The Finance Ministry on Sunday announced increased limits for ATM withdrawals and currency exchanges ahead of Finance Minister Arun Jaitley meeting Prime Minister Narendra Modi to apprise him of the progress of the government’s demonetisation-related efforts.

The government has begun issuing the new series of Rs. 500 notes, an official statement said.

“Banks have been advised to increase the exchange limit over the counter from the existing Rs. 4,000 to Rs. 4,500,” the Finance Ministry said in a statement, following a review of the demonetisation progress. “Banks have been advised to increase the cash withdrawal limit at ATMs from the existing Rs. 2,000 to Rs. 2,500 per day in the recalibrated ATMs,” the Ministry said.

It said the weekly limit of Rs. 20,000 for withdrawal from bank accounts has been increased to Rs. 24,000 and that the withdrawal limit of Rs. 10,000 per day has been removed. “In the first four days [from November 10 to 13, up to 5 p.m.], about Rs. 4 lakh crore of old Rs. 500 and 1000 bank notes have been deposited in the banking system and about Rs. 50,000 crore has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATMs or by exchange at the counter,” the statement said.” Banks have been advised to ensure the availability and distribution of small denomination notes, while the Chief Secretaries of the States have been requested to identify the rural pockets where availability of cash has been a problem and provide all support to the banks and post offices in order to alleviate the problems through mobile banking vans and banking correspondents.

The government has also asked customers to take action against those who are required to accept the old notes but do not do so.

“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,” the statement said.

Separately, the RBI has appealed to citizens not to go to branches repeatedly and also not to hoard cash.

Bank holiday

Banks will be closed in many northern and eastern States, except Himachal Pradesh and Jammu & Kashmir, on Guru Nanak Jayanti on Monday. Branches will remain open in the four States in South India and in Northeast India. They will be open in Gujarat but not in Maharashtra.

ATMs to give Rs. 2,500 per day and banks allow exchange up to

Rs. 4,500

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