PM Modi, on November 8, announced the ban of 500 and 1,000-rupee notes to crack down on black money.
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 order.
December 19- RBI imposes deposit cap of 5,000 rupees until December 30 subject to satisfactory response on such late deposit
December 13- RBI advices banks to preserve CCTV recordings at branches between November 8 to December 30
December 8- Government announces incentives on retail purchases of some products on cashless transactions
December 7- RBI withdraws temporary order for banks to place deposits under cash reserve ratio
December 2- Government raises limit for market stabilisation bonds to 6 tln rupees to absorb extra liquidity
December 1- Government says old 500 notes can no longer be used at petrol stations, airline ticket counters
November 30- RBI allows banks to use all cash to meet hiked cash reserve requirement ratio
- RBI tightens monthly withdrawal rules from "Jan Dhan" accounts for poor
November 28- Government announces tax amnesty scheme for unreported cash; will charge 50 pct in taxes, surcharges
- People would also have to park quarter of total sum in non-interest bearing deposit for 4 years
- RBI to allow withdrawals above Rs 24,000 weekly limit of deposits made in legal tender.
- Those withdrawals would be in new 2,000, 500 rupee bills
November 26- RBI says orders banks to place 100 pct of deposits between Sept-Nov under cash reserve ratio
November 25- RBI expands basket of securities that can be accepted for collateral under money market ops
- RBI says old currency notes can be exchanged at RBI branches
- RBI says tourists can exchange foreign currency worth up to Rs 5,000 per week till December 15
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- Indian government says will offer 210 bln rupees in farm credit to farmers
November 22- RBI sets balance kept in prepaid wallets, cards (PPIs) at 20,000 rupees from 10,000 til December 30
- Merchants can transfer up to 50,000 rupees from PPIs to banks til December 30
- Monthly limits on transactions via PPIs raised to 20,000 rupees for 10,000 til Dec 30
- RBI asks state-run Nabard to disburse up to 230 bln rupees for crop loans
November 21- RBI allows cash withdrawal of up to 250,000 rupees for wedding-related expenses
- RBI allows farmers to withdraw up to 25,000 rupees a week from their loan, deposit accounts
- RBI gives small borrowers 60 more days before loans of up to Rs 10 mln are marked substandard
- Government allows farmers to purchase seeds from state-run outlets with old 500 rupee notes
November 18- RBI sets limit of cash withdrawal at card swiping machines at 2,000 rupees per day
November 17- Government allows farmers to withdraw up to 25,000 rupees 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 2,000 rupees from 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 24,000 rupees from 20,000
- Removes per-day withdrawal limit cap of 10,000 rupees
- Raises limit for over-the-counter exchange of old bills at banks to 4,500 rupees from 4,000
- Waives ATM fees for all transactions by savings bank customers til December 30
- Govt increases withdrawal limits at recalibrated ATMs to 2,500 rupees/day from 2,000 rupees
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 4,000 rupees
- Caps cash withdrawals from bank accounts at 10,000 rupees per day till November 24
- Caps cash withdrawals from bank accounts at 20,000 rupees per week till November 24
- Caps cash withdrawals from ATMs at 2,000 rupees per day per card till November 1
- Caps cash withdrawals from ATMs at 4,000 rupees per day per card from November 19
- Allows certain payments in old notes including for petrol for limited time
© Thomson Reuters 2016