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Government Takes Steps To Ease Impact From Banknote Ban; Key Facts

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Government Takes Steps To Ease Impact From Banknote Ban; Key Facts
Mumbai: Prime Minister Narendra Modi shocked the country on November 8 by abolishing 500 and 1,000 rupee notes, which accounted for 86 percent of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India's cash economy to a virtual standstill.

The government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its measures. They are detailed below in chronological.

November 25

- RBI says old currency notes can be exchanged at RBI branches

November 24

- Government stops over the counter exchange of old banknotes; can only be deposited

- Government to ensure adequate cash supply for pensioners, armed forces personnel

- Allows certain payments in old 500 rupees notes including at tolls, hospitals for limited time

November 23

- India Government says will offer Rs 21,000 crore in farm credit to farmers

November 22

- RBI sets balance kept in prepaid wallets, cards (PPIs) at Rs 20,000 from Rs 10,000 till December 30

- Merchants can transfer up to Rs 50,000 from PPIs to banks till December 30

- Monthly limits on transactions via PPIs raised to Rs 20,000 rupees for Rs 10,000 till December 30

- RBI asks state-run Nabard to disburse up to Rs 23,000 crore for crop loans

November 21

- RBI allows cash withdrawal of up to Rs 250,000 for wedding-related expenses

- RBI allows farmers to withdraw up to Rs 25,000 a week from their loan, deposit accounts

- RBI gives small borrowers 60 more days before loans of up to Rs 10 crore are marked substandard

- Government allows farmers to purchase seeds from state-run outlets with old Rs 500 notes

November 18

- RBI sets limit of cash withdrawal at card swiping machines at Rs 2,000 per day

November 17

- Government allows farmers to withdraw up to Rs 25,000 a week against the crop loans

- Government extends time limit for farmer to pay crop insurance premiums by 14 days

- Cuts limit for over-the-counter exchange of old bills at banks to Rs 2,000 from Rs 4,500

November 15

- Government says banks must use indelible ink to ensure people change cash only once

November 14

- Extends deadline for payments in old notes including for petrol for limited time

November 13

- RBI raises cap on weekly cash withdrawals from banks to Rs 24,000 from Rs 20,000

- Removes per-day withdrawal limit cap of Rs 10,000 

- Raises limit for over-the-counter exchange of old bills at banks to Rs 4,500 from Rs 4,000

- Waives ATM fees for all transactions by savings bank customers till December 30

- Government increases withdrawal limits at recalibrated ATMs to Rs 2,500/day from Rs 2,000

November 11

- Extends deadline for payments in old notes including for petrol for limited time

November 8

- India abolishes 500, 1,000 rupee notes in fight against 'black money'

- 500, 1000 rupee notes must be tendered into banks, RBI by December 30

- Caps exchange of old bills over-the-counter at banks at Rs 4,000

- Caps cash withdrawals from bank accounts at Rs 10,000 per day till Nov 24

- Caps cash withdrawals from bank accounts at Rs 20,000 per week till Nov 24

- Caps cash withdrawals from ATMs at Rs 2,000 per day per card till November 18

- Caps cash withdrawals from ATMs at Rs 4,000 per day per card from November 19

- Allows certain payments in old notes including for petrol for limited time
 
© Thomson Reuters 2016


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