Banks to remain closed today; cash withdrawal only through ATMs, long queues likely

New Delhi: With banks across the country remaining closed on Sunday, cash withdrawal will be possible only through ATMs centres.

Serpentine queues are likely as people will only be able to withdraw money from the bank ATMs.

Although the overall situation continues to improve with every passing day ever since the Narendra Modi government announced its decision to ban old currency notes of Rs 500 and Rs 1000, cash crunch and dry ATMs are likely to aggravate the woes of the common man. 

On Saturday, all banks functioned during the normal working hours and allowed the exchange of old 500 and 1,000 rupee notes for their own customers, and not for people who hold accounts in other banks. 

Senior citizens were, however, exempted from this rule and they were allowed to approach any bank to exchange their old currency for new notes. 

Monday onwards, all customers will be allowed to exchange currency at a branch of any banks.

Since Prime Minister Narendra Modi's sudden announcement on November 8 outlawing high-denomination notes, banks have been overflowing with customers desperate to get cash. 

The bills that were cancelled form 86 per cent of the money in circulation.

Banks have been asked to use indelible ink, just like in elections, to ensure people are not exchanging more cash than is permitted.

PM Modi's "demonetization" drive aims at curbing tax evasion, corruption and forgery. The government has emphasized that the move had to be abrupt to ensure those hoarding black money did not have time to channel it into assets like property. 

After reviewing the situation on a day-to-day basis, the government and the Finance Ministry has tweaked the cash withdrawal and exchange rules several times to make it more convenient fo the common public.

The Reserve Bank of India on Friday announced that it will limit exchange of old notes into new ones at bank counters only once till December 30. 

The new norm came into effect from Friday, November 18. However, there is no limit on making bank deposits.

Also, government has cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30.

The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.