Withdrawal limits have been raised at ATMs, banks shut today for Guru Nanak Jayanti
Highlights
- New Rs 2,000 notes in ATMs from today or tomorrow
- Old notes valid at government hospitals, fuel stations, toll till Nov 24
- Withdrawal limit up: Rs. 2500 in ATMs, Rs. 4,500 exchange at banks
New Rs 2,000 notes will be available in some ATMs from tomorrow, the government said today amid a nationwide scramble for cash. Old Rs 500 and Rs 1,000 notes, scrapped last week in a sudden announcement by Prime Minister Narendra Modi, will be accepted for 10 more days at government hospitals, private nursing homes, petrol stations, and as power and water bills.
Here are 10 developments in the story:
PM Modi said at a meeting this evening of ruling party lawmakers that the country is with the government on demonetisation and there is no need to be defensive about the move in parliament, where the winter session starts on Wednesday.
No parking fees will be charged at airports for a week to ease the clamour for cash. National highways will also remain toll free at least till Friday.
Economic Affairs Secretary Shaktikanta Das said the supply of cash will be increased to post offices and a special team is working on recalibrating ATMs so they can dispense new Rs 2,000 notes. New Rs 500 notes were launched on Sunday.
The government has raised the daily limit of withdrawal from ATMs from Rs. 2,000 to Rs. 2,500 and exchange limit at banks from Rs. 4,000 to Rs. 4,500. Banks have been asked to raise the weekly withdrawal limit to Rs. 24,000 and scrap the daily cap.
New micro cash machines will be installed across the country, said Mr Das. The government would also raise the cash withdrawal limit of at least three-month old current accounts to Rs. 50,000 per week.
PM Modi held a meeting with top officers after midnight on Sunday to review the demonetization, a move to bring billions in black or untaxed money into the mainstream economy and check terror funding.
"By turning 500, 1000 notes into worthless paper, I have removed economic disparity. I am trying my best to do whatever I can to lessen your difficulties," PM Modi told a large gathering at Ghazipur in Uttar Pradesh today, adding that he was only asking for 50 days whereas the Congress "turned the country into jail for 19 months".
In a series of public meetings on Sunday, he had said the nation had elected him to fight corruption and he was ready to do even though he faced a threat to his life. "I know the forces up against me, they may not let me live... they may ruin me because their loot of 70 years is in trouble, but I am prepared," he said in an emotional speech in Goa.
Banks have received 3 trillion rupees ($44.4 billion) in deposits in the first four days since the currency ban, the Finance Ministry said in a statement late on Sunday.
Since last week, long queues at banks and ATMs have become routine for millions rushing to replace banned notes - the deadline is December 30 - or withdraw valid currency. The Reserve Bank of India has urged people to not withdraw cash repeatedly and hoard it.
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