Latest Posts


Friday, November 18, 2016

Bank withdrawal limits: Dear govt, please make up your mind on demonetisation rules

Prime Minister on the evening of November 8 announced that Rs 500 and Rs 1,000 notes would no longer be legal tender. In the wake of such a momentous economic reform, there came many subsequent announcements over how the process would actually work.

The was relentlessly ridiculed by some for its move and was attacked by the Opposition for effecting such a move during the wedding season. 

Here is a brief look at the major announcements by the since the announcement to deal with the situation.

1. Banks were closed on November 9, while the were shut on November 9 and 10.

2. The first limit was set at Rs 2,000 a day for each account.

3. ATM limit was set at Rs 2,000 per day.

4. limit for housewives was set at Rs 2.5 lakh, while people depositing above Rs 2.5 lakh were to be scrutinised by the I-T department.

5. Bank limit was set at Rs 4,000 per day and Rs 10,000 per week.

6. Exchange of limit was set at Rs 4,000 per day.

When re-opened after two days, serpentine queues were seen. dried up within two or three hours. Re-filling could not help the cause. The responded with a new set of measures.

7. The limit was increased to Rs 20,000 per week.

8. The limit for the exchange of was increased to Rs 4,500 per day.

9. Any business having a older than three months could withdraw up to Rs 50,000 per week.

10. With increasing difficulties, the limit from was increased to Rs 2,500 per day per card. However, many failed to dispense Rs 2,500.

11. The system of indelible ink to mark the people making withdrawals was introduced, so that a person could make only one per day. Not surprisingly, there is an extreme shortage of indelible ink and banks are using permanent markers instead.

After facing much criticism from the and the Opposition, the further changed the limits.

12. Farmers could draw up to Rs 25,000 per week against crop loans sanctioned and credited to their accounts.

13. Farmers can withdraw Rs 25,000 per week from an where a farmer receives either by cheque, or it an amount is credited by RTGS account.

14. For wedding ceremonies, up to Rs 2.5 lakh can be withdrawn from a bank that is KYC-compliant. A PAN card and self-declaration will be necessary. Only one member of a family, be it father or mother, can withdraw the money. 

15. For over-the-counter exchange of old Rs 500/1,000 notes, with effect from November 18, Rs 4,500 limit will be reduced to Rs 2,000.

16. Central employees up to the group C cadre can draw a salary advance of up to Rs 10,000 in cash; that will be adjusted against their November salaries.

This is a clear indication that the has not made up its mind as to how it can best handle the situation. The decision on withdrawals for weddings came after eight days of the announcement. Marriages were the first concern that had struck everyone, except the government.

This, however, might not just be the end. In the days to come, people can expect more revision in norms, going by the trend.
Copy :

No comments:

Post a Comment