Demonetisation: Daily limit at ATMs raised to Rs 2,500; exchange limit at banks up to Rs 4,500

To ensure cash availability in rural areas, the government has asked states’ chief secretaries to identify the rural pockets where availability of cash has been a problem.

By: ENS Economic Bureau | New Delhi | Updated: November 14, 2016 2:32 pm
arun jaitley, arun jaitley black money, black money, rs 500 ban, rs 1000 ban, demonetisation, jan dhan accounts, jan dhan, indian express news View of an ATM at South block in New Delhi on Sunday. (Source: PTI)

In a move aimed to ease long queues at banks, the finance ministry on Sunday directed banks to increase the daily cash withdrawal limits at ATMs to Rs 2,500 from Rs 2,000 and over the counter exchange limit to Rs 4,500 from Rs 4,000. Also, the government decided to increase the weekly withdrawal limit from bank accounts to Rs 24,000 from Rs 20,000, while the per day withdrawal limit of Rs 10,000 was removed. The finance ministry has also started issuance of Rs 500 notes.

WATCH VIDEO: PM Modi Reveals How He Planned Demonetisation Gradually In 10 Months

The decision came after the finance ministry took stock of the availability and distribution of all denomination of banknotes in different parts of the country based on reports received from states and banks.

To ensure cash availability in rural areas, the government has asked states’ chief secretaries to identify the rural pockets where availability of cash has been a problem.

“Instructions have been given to the banks and post offices to ensure proper distribution of all denomination notes. Banks have also been especially advised to ensure the availability and distribution of small denomination notes. Chief secretaries of the states have been requested to identify the rural pockets, if any, where availability of cash has been a problem and provide all support to the banks and post offices in order to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and banking correspondents,” a finance ministry statement said.

The finance ministry has also asked banks to increase the issuance and use of mobile wallets and debit/credit cards and give them to those customers and establishments who do not have access to these non-cash means of payment.

The government has advised customers to lodge complaints with the concerned district magistrate or administration in case their cheques/demand drafts/online payment transfers are not being accepted by business establishments including hospitals, caterers and tent houses among others, the statement said.

WATCH VIDEO: Demonetisation: Arvind Kejriwal, Kapil Sibal, Akhilesh Yadav Slam Modi Govt

The finance ministry said that from November 10-13, about 18 crore transactions have taken place in the banking system which included deposit of about Rs 3 lakh crores of old Rs 500 and Rs 1,000 currency notes. About Rs 50,000 crore has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATMs or by exchange at the counter, the statement said.

The finance ministry has also advised banks to arrange mobile banking vans at major hospitals to carry out emergency banking transactions for patients. The government has asked banks to make arrangements for separate queues for senior citizens and physically challenged.

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First Published on: November 14, 2016 1:05 am
  1. S
    Satendra kumar
    Nov 14, 2016 at 2:52 am
    The availability of higher currency notes reburshiement distribution of such security notes will needs paitence morales virtue for all Indians as it needs timeframe for such work.
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      ashok s
      Nov 14, 2016 at 12:43 am
      Pls make it mandatory for grocery shops to have swap machines ,so that ordinary netizens can buy groceries for daily use without hindrance . this will reduced unaccountabllty in small traders also. Fake goods like milk will evaporated from shelves. Its like one stone aimed at two target's
      Reply
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        Dash
        Nov 14, 2016 at 12:58 pm
        Everyone knew that doulat ji beti Mayawati,Bombta BanarJi,Mullahyam,Lalu have hundreds of crores of black money but only a few knew that Khujliwall too is corrupt. Demonetizaton has ensured that his black money amounting to a few hundred crores has become unusable. His frustration is more than some Cong leaders. Demonetization is a good beginning. Clean politics is a prerequisite for a clean economy.
        Reply
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          dd
          Nov 14, 2016 at 2:08 am
          A family of 2 can withdraw rs 5000.00 everyday. Which Common man family needs Rs. 5000.00 every day for normal daily life? Media a making noise and creating panic
          Reply
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            dd
            Nov 14, 2016 at 1:52 am
            With current limit a family of 2 can withdraw rs. 5,000.00 a day. Which common man needs Rs. 5,000.00 every day for normal living? Khujali, SP, Congress and Mamta are just spreading nonsense .......
            Reply
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              Sankaran Krishnan
              Nov 14, 2016 at 4:57 am
              The Govt. must ensure the availability of Rs.100 and Rs.50 denominations across all ATMs on war footing and do ensure the ATMs are filling thrice a day in the next couple of weeks or else the Banks and ATMs will always be crowded and the Banks staffs are also get frustrated if they are forced to work continuously in the coming days whcih will jeopardize the operations.
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                Lalit Mohan
                Nov 14, 2016 at 5:45 am
                Congress is paying its worker rs 200 to rs 500 for standing in queue and create chaos and problem to common man.lt;br/gt;You see a person withdrawing 4000 a day comes next day to stand in queue for what just to create problem in system
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                  R.Mehta
                  Nov 14, 2016 at 2:00 am
                  When most of ATMs are still not adjusted for new currency notes and there is shortage of Rs 100 note ,how increase of limit of withdrawal by Rs 500 through ATM is going to help people.How to meet the crowds in the bank has also not been addressed ,so the main problem still, remains .If in city like Delhi there is no cash a avilable in ATMs ,,what will, be situation in small areas away from Delhi.
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                    D N
                    Nov 14, 2016 at 1:09 am
                    It is a cruel joke when most ATMs are dry. Bank is also closed.
                    Reply
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                      Vihari Naidu
                      Nov 14, 2016 at 3:59 am
                      It costs around Rs.100000 for an open heart surgery. So a heart patient should stand in line for 40 days to get his money. RIP Common man. Tughlaq rule begins here.
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                        Raj V
                        Nov 14, 2016 at 1:28 am
                        Bank staff all over the country need to be appreciated for their tireless support for PM's drive.
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                          Raj V
                          Nov 14, 2016 at 1:18 am
                          The things are better now. However patients, road side potion and marriage functions need special attention. With the withdrawal limit increased further, middle cl will not suffer any further. The queues reminded me of the situations 40-50 years ago, when one had to line for kerosene,sugar and so on.
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