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.
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.
- RBI says old currency notes can be exchanged at RBI branches.
- 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.
- The government says will offer Rs 210 bn rupees in farm credit to farmers
- 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.
- 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.
- The RBI sets limit of cash withdrawal at card swiping machines at Rs 2,000 per day.
- 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.
- The government says banks must use indelible ink to ensure people change cash only once.
- The government extends deadline for payments in old notes including for petrol for limited time.
- 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.
- Extends deadline for payments in old notes including for petrol for limited time.
- 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.