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Home / Business News / Over two weeks after banknote ban, here are all steps taken by Modi govt

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.

business Updated: Nov 25, 2016, 17:10 IST
Reuters
Reuters
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.

ht epaper

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