Thursday, November 17, 2016

Demonetization: 4 key changes on exchange/withdrawal of old notes

After the demonetization of old currency notes of Rs 500/1000, the Govt. has allowed exchange of old notes up to Rs 4500. However, there are long queues outside the banks for exchanging old notes. It has come to the notice of Govt. that people are coming again and again to exchange old notes. In order to stop such unscrupulous practice of multiple withdrawal by same person, the Govt. has asked banks to use indelible ink on people exchanging old notes.

Recent decisions taken by Govt. on demonetization are given here under:

1) No charges on multiple withdrawals from ATM: Under existing norms, bank charges fee for more than 3 withdrawal from ATM. However, due to withdrawal limit of Rs 2500 per day, people are forced to do multiple transactions. Thus, in order to provide relief to them, it has been decided to waive off charges on multiple withdrawals from ATMs till December 30, 2016.

2) Indelible Ink for exchanging old notes: It has come to the notice of Govt. that people are coming again and again to exchange old notes. In order to stop such unscrupulous practice of multiple withdrawal by same person, the Govt. has asked banks to use indelible ink on people exchanging old notes Rs. 500 and 1,000.

a) Withdrawal limits: The withdrawal limit from ATMs has been increased from Rs 2000/- per day to Rs 2500/- per day. The cash withdrawal limit from bank account has been increased to Rs. 24000 per week from Rs 20,000. However, the withdrawal limit of Rs. 10000 per day from bank account has been removed. The current account holders (which are operational for last three months or more) are allowed to withdraw up to Rs. 50000 from bank per week.

3) Exchange limit: The limit of exchanging old notes of Rs. 500/1000 over the counter has been increased from Rs. 4,000 to Rs. 4,500.

4) Senior Citizens: Banks are advised to make arrangements for separate queues for Senior citizens and Divyang (disabled) persons. Similarly, separate queues should also be arranged for people depositing money and those exchanging old notes.

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