Published On : Sun, Nov 13th, 2016

Demonetization – Withdrawal from ATMs , increased exchange limit and other sops offered


As promised by Prime Minister Modi in his Goa talk,  there was a high level review which included the Finance Ministry on the position of availability and distribution of all denomination of bank notes.

Chief Secretaries of the States have been requested to identify the rural pockets, if any, where availability of cash has been a problem and provide all support to the Banks and Post Offices in order to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and Banking Correspondents(BCs). As per an on spot survey done by NT in Kalmeshwar, ATMs across the taluka town were closed and banks were the only source of getting cash

Here are other outcome of the review meet

#The issuance of the new Rs. 500/- notes has already commenced – but limited to Delhi, Mumbai and Bhopal at the moment.

#Banks have been advised to increase the Business Correspondents limit to Rs 2500/- for withdrawal from bank accounts. They have also been advised to increase the exchange limit over the counter from the existing Rs 4000/- to Rs 4500/.

#Banks have been advised to increase the Cash Withdrawal limit at ATMs from the existing Rs 2000/- to Rs 2500/- per day in the recalibrated ATMs.

#The weekly limit of Rs.20,000/- for withdrawal from Bank accounts has been increased to Rs.24,000/-. The limit of Rs.10,000/- per day has been removed.

#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

#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.

# It has been reported that certain business houses like Hospitals , Caterers , Tent houses etc. are not accepting Cheques/Demand Drafts and online payment transfer from customers.  In such cases customers are advised to  make a complaint to the concerned District Magistrates/District Administration for action against such establishments.

# Government of Assam has arranged a Mobile Banking Vans with support of Banks and State Government Staff at certain Hospitals for carrying out emergency banking transactions. All Banks have now been advised to arrange mobile banking vans to the extent possible at major hospitals to carry out emergency banking transaction for patients.

# Banks have been advised to make arrangements for separate queues for Senior citizens and Divyang persons. Separate queues will also be arranged for exchange of cash to cash and transactions against Bank accounts.

#Government of Arunachal Pradesh has made special arrangements like cash deposits /withdrawal and opening of new bank accounts in the remotely located areas with the help of Banks and State Government staff. State Governments have been requested to facilitate opening of new Bank accounts as a part of financial inclusion programme.