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In a release on Sunday night, the office of the Union finance minister Arun Jaitley said that it has reviewed its position on the cash crunch.
"We have received in the first four days November 10-13 about Rs 3 lakh crore of old Rs 500 and 1,000 bank notes as deposits in the banking system. About Rs 50,000 crores have been dispensed to customers by either withdrawal from accounts or ATMs and counter exchange. The banking system has handled about 21 crore transactions," said the release.
The ministry of finance said that it is coordinating with the Reserve Bank of India, banks and post offices to make all denomination notes available at all locations. "Banks have also been especially advised to ensure the availability and distribution of small denomination notes," said the release.
Chief secretaries of states have been also been asked to identify the rural pockets, where cash crunch is a bigger issue than in urban centres and alert banks and post offices to ensure delivery in these hotspots first through mobile banking vans and banking correspondents (BCs).
"If hospitals, caterers, tent houses are not accepting cheques/demand drafts and demand online payments from customers, complaints can be made to the concerned district magistrates/district administration for action against such establishments," said the release.
The ministry also cited the example of the government of Assam arranging mobile banking vans and advised all banks to arrange mobile banking vans outside major hospitals for emergency banking for patients. Banks must also have separate queues for senior citizens and separate queues for exchange of cash-to-cash versus bank account transactions.
Financial inclusion should also be an agenda and banks must help the unbanked open new accounts, said the ministry citing the government of Arunachal Pradesh, which had made special arrangements like cash deposits /withdrawal and opening of new bank accounts in the remotely located areas.
Issuance of Rs 500 notes has already commenced and banks can increase Business Correspondents limit to Rs 2,500 for withdrawal from bank accounts. "We have advised banks to increase the exchange limit over the counter from the existing Rs 4,000 to Rs 4,500," said the release.
Banks have also been advised to increase ATM cash withdrawal limit to Rs 2,500 per day in 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.
"We have received in the first four days November 10-13 about Rs 3 lakh crore of old Rs 500 and 1,000 bank notes as deposits in the banking system. About Rs 50,000 crores have been dispensed to customers by either withdrawal from accounts or ATMs and counter exchange. The banking system has handled about 21 crore transactions," said the release.
The ministry of finance said that it is coordinating with the Reserve Bank of India, banks and post offices to make all denomination notes available at all locations. "Banks have also been especially advised to ensure the availability and distribution of small denomination notes," said the release.
Chief secretaries of states have been also been asked to identify the rural pockets, where cash crunch is a bigger issue than in urban centres and alert banks and post offices to ensure delivery in these hotspots first through mobile banking vans and banking correspondents (BCs).
"If hospitals, caterers, tent houses are not accepting cheques/demand drafts and demand online payments from customers, complaints can be made to the concerned district magistrates/district administration for action against such establishments," said the release.
The ministry also cited the example of the government of Assam arranging mobile banking vans and advised all banks to arrange mobile banking vans outside major hospitals for emergency banking for patients. Banks must also have separate queues for senior citizens and separate queues for exchange of cash-to-cash versus bank account transactions.
Financial inclusion should also be an agenda and banks must help the unbanked open new accounts, said the ministry citing the government of Arunachal Pradesh, which had made special arrangements like cash deposits /withdrawal and opening of new bank accounts in the remotely located areas.
Issuance of Rs 500 notes has already commenced and banks can increase Business Correspondents limit to Rs 2,500 for withdrawal from bank accounts. "We have advised banks to increase the exchange limit over the counter from the existing Rs 4,000 to Rs 4,500," said the release.
Banks have also been advised to increase ATM cash withdrawal limit to Rs 2,500 per day in 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.
