Reviewing the currency availability situation in the economy, a meeting was stocked at the midnight to check on the stock of the current status of supply of cash. Many decisions were taken to further activate the dispensing of cash through the networks of banking correspondents, post offices, ATMs, banks and E-payment systems. Following the massive demonetisation drive of old Rs 500 and Rs 1000 notes, people are being queued up to exchange old notes and withdraw money.
The government had last night reviewed the limits on daily withdrawal from ATMs and banks. The limit for the exchange of old Rs 500 and Rs 1000 notes was also hiked to Rs 4,500 as against Rs 4,000 earlier. Meanwhile, ATMs are being recalibrated to dispense the new Rs 500 and Rs 2000 notes. Some steps were taken towards the easy flow of cash. According to the report the following measures have been implemented.
ATM Networking
- To expedite the process of recalibration of ATMs, a Task Force is being set up under Deputy Governor,RBI consisting of representatives of Banks and Finance Ministry. This Task Force will draw up an action plan and ensure implementation of this action plan for quick recalibration of the ATMs to enable them to dispense new Bank notes of Rs 500/- and Rs 2000/-.
- In the meantime, Micro ATMs will be deployed to dispense cash against Debit/Credit cards up to the cash limits applicable for ATMs. The handheld Micro ATMs have the facility of mobility and deployment at the required places.
Reach of the Banks
- The withdrawal limit of Rs 20,000/- per week has been enhanced to Rs 24,000/-. The withdrawal limit of Rs 10,000/- per day has been removed.
- The ATMs are progressively getting recalibrated. As and when they are recalibrated, the cash limit of such ATMs will stand enhanced to Rs 2500/- per withdrawal.
- The limit of Rs 4000/- for over the counter exchange against old Rs 500/- and Rs 1000/- notes has been increased to Rs 4500/-.
- Business entities having Current Accounts which are operational for last three months or more will be allowed to draw Rs.50,000/-per week. This can be done in a single transaction or multiple transactions. This will enable the small business entities to pay wages to their workers and make sundry payments.
- Adequate cash will be made available with District Central Cooperative Banks (DCCBs) to facilitate withdrawal from existing accounts. The cash withdrawal limits for Banks will apply in the case of DCCBs also.
The above measures would substantially enhance the reach of the banking system to exchange notes and facilitate cash withdrawal from bank accounts.
Banking Correspondents Network
- Banks will increase the cash holding limit of BCs to at least Rs.50,000/- each. Banks will also allow higher limits in appropriate cases.
- BCs have a wide presence in the rural areas. Totally there are 1.2 lakh BCs in the country. The above decisions will facilitate wider reach in the rural areas for exchange and withdrawal of cash from Bank Accounts.
Postal Network
- There are about 1.3 lakh Branch Post Offices in the country. It has been decided to enhance the supply of cash to Branch Post Offices to facilitate cash withdrawals from Postal Accounts. It may be noted that with 1.2 lakh BCs and 1.3 lakh branch Post Offices getting further activated, a total number of 2.5 lakh points in rural areas will be available to disburse cash and facilitate cash withdrawals from Bank Accounts.
E-Payments
- All Central Government Departments and Public Sector Enterprises are being instructed to use the method of e-payments to the maximum extent possible.
- RBI has advised National Payments Corporation of India (NPCI) to waive its transaction charges on transactions settled through National Financial Switch(NFS) till 31st December 2016.
Banks are also being advised to waive similar charges currently levied by them.
Arrangements for public convenience
- Banks have been advised to arrange separate queues in their branches for senior citizens and divyang persons; customers for transactions against accounts held with the Bank; and exchange of notes.
- Pensioners are required to submit Annual Life Certificate during the month of November. This time limit has been extended up to 15th January 2017.
- The existing exemptions for acceptance of old Rs 500/- and Rs 1000/- notes for certain types of transactions are being extended beyond 14th November 2016 midnight up to 24th November 2016 midnight.
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