Demonetisation: Withdrawal amount from ATMs increased to Rs 2,500, exchange limit over counter raised to Rs 4,500

Zee Media Bureau

New Delhi: Daily limit for withdrawing cash from ATMs has been increased to Rs 2,500 from existing Rs 2,000, announced Ministry of Finance on Sunday after reviewing the position regarding availability and distribution of all denomination of bank notes.

... withdrawal limit from ATMs increased to Rs. 2500 from Rs. 2000, weekly withdrawal limit to Rs. 24000 from Rs. 20000... 2/3 — Ministry of Finance (@FinMinIndia) November 13, 2016

Banks advised to increase withdrawal limit from BCs to Rs. 2500, exchange limit over the counter increased to Rs. 4500 from 4000... 1/3 — Ministry of Finance (@FinMinIndia) November 13, 2016

In addition, exchange limit over the counter has been increased to Rs 4,500 from Rs 4000 at present, while daily withdrawal limit of Rs 10000 has been removed.

Weekly limit of Rs 20,000 for withdrawal from bank accounts has also been increased to Rs 24,000

Banks have also been advised to arrange for separate queues for Senior citizens and Divyang persons.

All Banks have been advised to arrange mobile banking vans to the extent possible at major hospitals for emergency banking transaction for patients. 

Last date for submission of the annual life certificate for pensioners, to be submitted in November, has been extended up to January 15, 2017.

Instructions have been issued to the banks and post offices to ensure proper distribution of all notes, including those of smaller denominations, up to the last mile through mobile banking vans and Banking Correspondents (BCs) to ease pressure.

While the old Rs 500 and Rs 1000 currency notes were demonetised from the midnight of November 8, a brand new Rs 2000 note was introduced on November 10.

"In the first four days (from November 10th to 13th , upto 5 pm ), about Rs 3 lakh crore of old Rs 500 and 1000 bank notes have been deposited in the banking system and about Rs 50,000 crores has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATM's or by exchange at the counter," the statement said.

Within three four days, the banking system has handled about 21 crore transactions.

Further based on the review of the reports received from the States, banks and other sources, the ministry decided that continuous coordination is to be done with RBI, banks and post offices to make all denomination notes available at all locations.

"Instructions have been given to the banks and post offices to ensure proper distribution of all denomination notes. Banks have also been especially advised to ensure the availability and distribution of small denomination notes," it said.

Also, Chief Secretaries of the states have been asked to identify the rural pockets where availability of cash has been a problem and provide all support to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and Banking Correspondents (BCs), the statement said.

"It has been reported that certain business houses viz. hospitals, caterers , tent houses etc. Are not accepting Cheques/Demand Drafts and online payment transfer from customers. It is advised that in such cases customer can make a complaint to the concerned District Magistrates/District Administration for action against such establishments," the statement said.

All banks have been advised to arrange mobile banking vans to the extent possible at major hospitals to carry out emergency banking transaction for patients.

Banks have also been asked to make arrangements for separate queues for senior citizens and physically handicapped. Separate queues will also be arranged for exchange of cash to cash and transactions against bank accounts.

"State governments have been requested to facilitate opening of new bank accounts as a part of financial inclusion programme," the statement added.

(With PTI inputs)