Demonetisation: Government may put total ban on exchange of old notes soon

Zee Media Bureau

New Delhi: In what could further shock the people facing huge cash crunch following Prime Minister Narendra Modi's decision to demonetise the high-value currency notes, the government may put a ban on exchange of old notes.

As per Zee Media sources, the government might announce a total ban on exchange of old Rs 500 and Rs 1,000 notes soon since it has purportedly got several reports on anomalies in exchange of old notes.

Sources further said that the government may only allow deposit of old notes at banks. Such deposits can be withdrawn only through ATMs or by cheque.

A decision regarding the same might be announced before November 24.

With the demonetisation creating hardships in the middle of marriage and sowing seasons, government yesterday allowed witdrawals up to Rs 2.5 lakh for weddings and up to Rs 50,000 for farmers but more than halved the limit of exchange of defunct notes to Rs 2,000.

Economic Affairs Secretary Shaktikanta Das said the families preparing for a wedding can withdraw up to Rs 2.50 lakh from bank account giving PAN details and self declaration.

However, with effect from today individuals can exchange invalid 500 and 1,000 rupee notes totalling Rs 2,000, as against Rs 4,500 earlier, only once till December 30.

Besides, farmers who have taken crop loan or have kisan credit card can withdraw Rs 25,000 per week. Also those who have got payments through RTGS or cheque deposit in KYC compliant bank account can withdraw an additional Rs 25,000 a week. This takes the total cash withdrawal limit for farmers from KYC complaint bank accounts to Rs 50,000 per week.

Prime Minister Narendra Modi had on November 8 surprised citizens by announcing demonetisation of 500 and 1000 rupee notes and since then large number of seemingly unending queues before banks and post offices are seen in order to exchange these currencies.