The first weekend after Prime Minister Narendra Modi’s move to demonetise Rs 500 and Rs 1,000 notes, banks remained open, offering a much-needed respite to the aam aadmi. But a bank holiday on Monday, in lieu of Guru Nanak Jayanti, created massive panic and ruckus as many continued to reel under the cash crunch.
There were unending queues of cash-starved citizens outside ATMs – mostly closed or “not working”. Many scrambled outside banks in the hope of procuring some cash.
In the meantime, the ruling government is facing relentless attacks from the opposition.
Centre Removes Rs 10,000 Limit
On Sunday, the government decided to increase the withdrawal limits at banks and ATMs. The limit of Rs 10,000 per day withdrawal has been removed, the Finance Ministry said in a statement.
The Centre also urged the states to "facilitate the opening of new bank accounts" and last-mile distribution of small denomination notes as it announced that the new Rs 500 note had been issued.
ATM, Bank Withdrawal Limit Hiked
The daily withdrawal from ATMs has been hiked to Rs 2,500 from Rs 2,000 and from bank counters to Rs 4,500 from Rs 4,000, the ministry added. The upper limit for weekly withdrawals from bank accounts has been raised to Rs 24,000 from Rs 20,000.
Modi Asks For 50 Days’ Time to Tide Over Cash Crisis
Following a review meeting, the ministry’s decisions came a day after Prime Minister Narendra Modi returned to India from Japan and made an impassioned plea to the citizens while addressing public meetings in Maharashtra and Goa.
He sought 50 days' time until 30 December to tide over the cash crisis and weed out the ill-gotten wealth in the country's economy.
Banks have also been told to cater separately to senior citizens and the handicapped.
The ministry urged people to lodge complaints with the District Magistrates and district administrations if hospitals, caterers and tent houses refused to accept cheques, demand drafts and online payment transfer.
It said that from 10 November (when the banks reopened) till 5 pm on 13 November, about Rs 3 lakh crore of old Rs 500 and Rs 1,000 bank notes had been deposited in the banking system. Within these four days, the banking system has handled about 18 crore transactions.
About Rs 50,000 crore had been disbursed to customers through account withdrawals or from ATMs or by exchange of old notes.
(With inputs from IANS)
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