Demonetisation: Govt may withdraw exemptions on banned notes before Dec 15

On November 24, the exemptions for acceptance of Rs 500 and Rs 1,000 notes had been extended till December 15 in certain transactions.

Written by Liz Mathew | New Delhi | Updated: December 1, 2016 6:05 am
demonetisation, cash deficit, notes scrapped, notes banned, demonetisation impact, demonetisation effects, economy affected, india news, indian express news The government sources also said adequate arrangements have been made to face the pay day and the Reserve Bank is fully prepared for it.

The exemptions given to certain transactions where payments have been allowed using the old currencies may be reviewed before December 15 as these measures are seen as having created hindrances in the new currency notes coming into circulation through the banking channels, government sources said.

On November 24, the exemptions for acceptance of Rs 500 and Rs 1,000 notes had been extended till December 15 in certain transactions. However, the government has assessed that many such exemptions, in fact, blocked new currencies from reaching to the public. “Wherever old currencies are allowed, some are using them just to change the old currencies into new. For example, the new currencies from the customers in petrol pumps do not reach the bank. Instead they go to those who want to convert,” pointed out a source in the government.

“At one point you will have to stop this ensure smooth circulation of the legally tendered currencies. There is a suggestion that all exemptions should be stopped. Because an average citizen is not getting the new currencies,” the source said.

The government sources also said adequate arrangements have been made to face the pay day and the Reserve Bank is fully prepared for it. “From today (Wednesday) evening there will be excess release of cash for five-six days,” the source said.

Explaining the measures, the source said the RBI has certain level of stock already and printing has been happening every day. “It releases a particular quantum and identifies a figure. They will keep releasing the figure every day till December 30,” he said. The government-owned presses at Nashik and Dewas have been printing only Rs 500 notes and the two presses of the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), a subsidiary of RBI, in Mysuru (Karnataka) and Salboni (West Bengal) print Rs 2,000 and Rs 500. “They are conscious that people will withdraw more during pay day time. So before November 30, they have tightened the release and would release more in the coming days,” he said.

The source added that the quantum of the currencies would not be an issue but the “tendency to hold legally tenderable currency” is not good. That’s the reason behind the suggestion that all exemptions should be stopped before the given time, he explained.

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First Published on: December 1, 2016 3:58 am
  1. K
    Khan
    Dec 1, 2016 at 7:31 am
    PM=Param Moorkh (christened specially for mismanaged demonization of Modi)
    Reply
    1. A
      ashok s
      Dec 1, 2016 at 2:10 am
      This govt should have done before . now what is the use all black money back in system. ried cl, daily wagers, poor's suffering significantly on behest of govt cronies. Very bad
      Reply
      1. T
        tipu
        Dec 1, 2016 at 12:53 am
        It means the new currency notes that are expected to be actually in circulation are not. They have gone to the stock of black money holders. lt;br/gt;Let's putting aside the trouble caused due to demonetisation, hope that the cost of printing now currency be recovered from black money.
        Reply
        1. J
          Joy
          Dec 1, 2016 at 6:20 am
          Confusion from day one of demonetization ! Everyday new rules are being imposed on common man. What the Finance ministry is saying is not acceptable to RBI, what RBI is saying is not implemented by other banks... and the bank staff are doing something in lt;br/gt;there own ! total confusion. will there be an end for this...chaos..?
          Reply
          1. R
            roby mani
            Dec 1, 2016 at 11:22 am
            People will find ingenious methods to convert black into white. The Government may be able to unearth a small portion of the Black money held in currency form. I very much doubt whether it will be any where near the figure estimated by Finance Minister sourceslt;br/gt; . One question to be asked is whether the w exercise was worth it or not, for the sufferings caused to the people and the deleterious effect it is having on the economy as a w. lt;br/gt; May be it is worth while for the BJP, as it may help them win the UP polls and get majority in the Rajya Sabha. This will prove as a major advantage for implementing their sinister agendal
            Reply
            1. C
              comet
              Dec 1, 2016 at 7:19 am
              swift agility displa by the capable government. har har modi
              Reply
              1. S
                siriyaar
                Dec 1, 2016 at 3:45 am
                Stop it. Quickly. Dont wait
                Reply
                1. S
                  s s nair
                  Dec 1, 2016 at 1:18 am
                  I request all opposition parties not to do anything against Modi govt policies whether banning notes or terrorism. The terrorists will destroy BJP and if necessary the demonetisation will do the rest. So the opposition will have no work.
                  Reply
                  1. P
                    P Eng Suraj Singh
                    Dec 1, 2016 at 1:09 am
                    No professional planning!!!!
                    Reply
                    1. B
                      Bharatvasi
                      Dec 1, 2016 at 6:22 am
                      A famous Sanskrit proverb says - vinaash kaale vipreet buddhi - meaning, when one's destruction time is soon to arrive, one thinks un-intelligently or negatively.
                      Reply
                      1. V
                        Vimal Riktam
                        Dec 1, 2016 at 6:34 am
                        SIT DOWN WITH A CUP OF TEA. BREATHE DEEPLY.RELAX.
                        Reply
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