10 developments after Rs.500/1000 demonetisation

Here’s a round-up of all the important developments

Ten days after demonetisation of Rs. 500 and Rs. 1,000 notes was announced by Prime Minister Narendra Modi, there seems to be little respite for those thronging ATMs and banks to withdraw or exchange what is now illegal tender.

Here’s a round-up of all the important developments:

1. On November 19, banks served only their respective customers and did not exchange old notes from customers of other banks. However, the restriction was not applicable to senior citizens.

2. The Supreme Court on Friday warned that there “may be riots” and refused the government’s plea to stay cases filed against demonetisation in High Courts and lower courts across the country, saying “how can we shut our doors to people when there is a problem of such magnitude.”

3. The exchange limit has been reduced to Rs. 2,000 to ease some pressure on cash demand. Families can withdraw up to Rs. 2,50,000 for weddings.

4. The withdrawal limit from ATMs has been increased from Rs. 2,000 to Rs. 2,500, but this will apply only to the recalibrated ATMs.

5. Several measures were announced to ease the burden on farmers. To ensure sowing in the Rabi season, the government has allowed farmers to withdraw Rs. 25,000 a week against crop loan/kisan credit card. Traders in agricultural mandis will be permitted to draw Rs. 50,000 in cash per week to pay for sundry expenses like wages. While the time limit for payment of crop loan insurance premium has been extended by 15 days, government employees up to Group C have been given an option to draw salary advance in cash.

6. To stop repeat money exchange with invalid currency notes, banks have started applying indelible ink mark on the right index finger of customers in select metro cities.

7. Following the move, the Election Commission asked the Central government to continue its use of indelible ink at banks, but in keeping with the EC’s directions.

8. The exemption deadline for all those services allowed to accept the old Rs. 500 and Rs. 1000 notes was extended to November 24 midnight. These services include petrol pumps, pharmacies, and utility services amongst others.

9. Parliament saw repeated disruptions over the issue. Both Houses ended up being adjourned on the second day of the winter session after Congress leader Ghulam Nabi Azad’s remarks comparing deaths in this period to those in the Uri attacks. MoS for Parliamentary Affairs Mukhtar Abbas Naqvi demanded an apology from Mr. Azad, stalling business further.

10. Cash seizures from across the country have increased since the demonetisation announcement.

Source : http://www.thehindu.com/