Over two weeks after banknote ban, here are all steps taken by Modi govt | business-news | Hindustan Times
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Over two weeks after banknote ban, here are all steps taken by Modi govt

Prime Minister Narendra Modi shocked the country on November 8 by abolishing Rs 500 and Rs 1,000 notes, which accounted for 86% 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.

black money crackdown Updated: Nov 25, 2016 17:10 IST
The government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its demonetisation measures.
The government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its demonetisation measures. (PTI)

Prime Minister Narendra Modi shocked the country on November 8 by abolishing Rs 500 and Rs 1,000 notes, which accounted for 86% 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 Rs 500 notes including at tolls, hospitals for limited time.

November 23

- The government says will offer Rs 210 bn 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 Dec 30

- Merchants can transfer up to 50,000 rupees from PPIs to banks til Dec 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 bn rupees for crop loans.

November 21

- The RBI allows cash withdrawal of up to Rs 2,50,000 rupees for wedding-related expenses.

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

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

- The government allows farmers to purchase seeds from state-run outlets with old Rs 500 notes.

November 18

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

November 17

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

- The 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

- The government says banks must use indelible ink to ensure people change cash only once.

November 14

- The government extends deadline for payments in old notes including for petrol for limited time.

November 13

- The 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 til December 30.

- The government increases withdrawal limits at recalibrated ATMs to Rs 2,500 per day from Rs 2,000.

November 11

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

November 8

- India abolishes Rs 500, Rs 1,000 notes in fight against black money.

- Rs 500, Rs 1000 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 November 24.

- Caps cash withdrawals from bank accounts at Rs 20,000 per week till November 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.