The deadline to swap old 500 rupee and 1,000-rupee bills for new ones ended on December 30.
New Delhi: Prime Minister Narendra Modi will address the country today on New Year's eve which also brings an end to a 50-day period that he had sought to bring normalcy after an abrupt November 8 ban on 500 and 1,000-rupee notes. While the restrictions on cash withdrawal stays on because of a limited cash supply to banks, the daily withdrawal limit from ATMs have been increased from Rs 2,500 to Rs 4,500.
Here are the top 10 developments of the story:
Starting January 1, you can pull out Rs. 4,500 per day per card at ATMs. However, the weekly limit per bank account remains unchanged at Rs. 24,000 as the government tries to replace the outlawed currency with new bills.
The RBI has asked banks to submit details of the deposits made in the outlawed currency. It is estimated that more than 90% of the cancelled notes have been already deposited in banks, which means that the government's intention of removing black money may have missed its mark.
The PM has been widely hailed for his assault on tax evasion but long queues outside banks, a cash crunch and policy flip-flops have led to a concerted attack from the opposition.
Many top industrialists and financial experts have praised the PM's call to move towards a digital economy, but some industries have ground to a halt and laid off staff, highlighting India's huge dependence on cash.
Only 35-40 percent of ATM machines are currently dispensing cash, according to Ramaswamy Venkatachalam, managing director, India and South Asia, Fidelity Information Services, a banking technology provider.