Tuesday, November 15, 2016

New Rules For Exchange Of Notes





15-November-2016 19:27 IST
Today government has announced new rules on various issues related to exchange of old and demonetized notes. You may read this in following link and share this link with your friends and colleagues.




The Prime Minister Shri Narendra Modi reviewed the position for the second consecutive day yesterday regarding the smooth supply and availability of currency notes; Among major decisions taken during the Meeting include to continue to give highest importance to ensure convenience for the public;

Use of Indelible ink for over the counter exchange against old Rs.500/- and Rs.1000/- notes; Arrangements to make available adequate cash to the Postal Department for their use including the branch Post Offices.


The Prime Minister Shri Narendra Modi reviewed the position with regard to supply and availability of currency notes for the second consecutive day yesterday (14.11.2016) late evening. The Meeting, which went on till about midnight, was attended among others by the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, Minister of State (Independent Charge) for Coal & Power, Shri Piyush Goyal, Principal Secretary to the Prime Minister Shri Nripendra Misra and Additional Principal Secretary to the Prime Minister, Dr. P.K.Mishra, Cabinet Secretary, Shri P.K.Sinha, Governor, RBI, Dr. Urjit R Patel, Secretaries from the Finance Ministry and other officials from PMO. A detailed review was made with regard to the steps that have been taken for smooth distribution and dispensing of cash through various channels of disbursement. 

After detailed discussions, the following decisions were taken: 

1. Highest importance should continue to be given to ensure convenience for the public. Effort should be made to avoid long queues in Bank branches, ATMs, etc. Already separate queues for senior citizens, divyang persons etc. have been announced. The drawing limits against Bank Accounts and from ATMs and over the cash disbursement have also been increased. It was noted that one of the primary reasons for long queues was that the same persons were visiting Bank branches, ATMs etc. repeatedly. It was also noted that certain unscrupulous elements are using the services of poor and innocent people to convert their black money into white. 

To prevent such misuse of the facility and enable larger number of persons to draw cash, indelible ink used during elections shall be used for over the counter exchange against old Rs.500/- and Rs.1000/- notes. This is not applicable in the case of withdrawal from or deposit into accounts. 

Cash disbursement points, especially Bank branches will be advised to put-up notices outside their branches advising people to avoid exchange of old notes over the counter multiple times. 

2. Already instructions have been issued permitting District Central Cooperative Banks (DCCBs) for cash withdrawal from existing accounts, subject to limits applicable in the case of Banks. Arrangements have been made to enhance the availability of cash with the DCCBs. 

3. Arrangements have been made to make available adequate cash to the Postal Department for their use including the branch Post Offices. There are 1.3 lakh branch Post Offices having wide coverage in the rural areas. Availability of adequate cash with the branch Post Offices will ensure wider coverage of the rural areas. 

4. Contributions are made in hundis and separate boxes in places of worship. Such establishments have their accounts with the Bank branches. Bank branches have been advised to approach the concerned authorities in these establishments to obtain the currency notes, especially of lower denomination and put them back into circulation. This will help in improving the circulation of lower denomination currency notes. 

5. Information has been received that there is sudden spurt in the quantum of deposits in several Jan Dhan Accounts. There are also reports of unscrupulous elements using Jan Dhan Accounts of poor and innocent persons to convert their black money into white. Such spurt in deposits will be looked into closely. Jan Dhan Account holders are requested not to allow their accounts to be misused by anyone. Further, it is also clarified that Jan Dhan Account holders will not be put to any kind of inconvenience for carrying-out their legitimate activities. 

6. Old Rs.500/- and Rs.1000/- notes are accumulating in Post Offices and Bank branches. Special efforts will be made to shift such notes and create space in the Post Offices and Bank branches to receive new notes. 

7. A high level Task Force consisting of representatives from various agencies is being set-up to monitor movement/receipt of fake notes in vulnerable areas. This Task Force will also take special efforts to monitor black money being deposited into Bank/Postal Accounts, especially under fictitious and other names. 

8. A technology team is being set-up to popularize the use of e-wallets. 

9. Government is closely monitoring the supply of essential commodities. 

10. A coordination group chaired by the Cabinet Secretary and including representatives of various Departments and major Banks is holding regular meetings to monitor the implementation of all the steps. 

13-November-2016 21:29 IST
Finance Ministry reviews the position regarding availability and distribution of all denomination of bank notes in different parts and regions of the country; Issuance of the new series of Rs. 500/- notes commenced; Instructions issued to the Banks and Post Offices to ensure proper distribution of all denomination notes including small denominations up to the last mile including through mobile banking vans and Banking Correspondents (BCs).
The Union Finance Ministry today reviewed the position regarding availability and distribution of all denomination of bank notes. Some of the highlights of the review and the decisions taken are as follows:- 

1. In the first four days ( from November 10th to 13th , upto 5 pm ) about Rs 3.0 lacs crores of old Rs.500/- and Rs.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. Within these four days, the banking system has handled about 18 crore transactions. 

2. Coordination is being continuously done by Ministry of Finance with RBI, Banks and Post Offices to make all denomination notes available at all locations. 

3. 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. 

4. Chief Secretaries of the States have been requested to identify the rural pockets, if any, where availability of cash has been a problem and provide all support to the Banks and Post Offices in order to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and Banking Correspondents (BCs). 

5. 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. 

6. Government of Assam has arranged a Mobile Banking Vans with support of Banks and State Government Staff at certain Hospitals for carrying out emergency banking transactions. All Banks have now been advised to arrange mobile banking vans to the extent possible at major hospitals to carry out emergency banking transaction for patients. 

7. Banks have been advised to make arrangements for separate queues for Senior citizens and Divyang persons. Separate queues will also be arranged for exchange of cash to cash and transactions against Bank accounts. 

8. Government of Arunachal Pradesh has made special arrangements like cash deposits /withdrawal and opening of new bank accounts in the remotely located areas with the help of Banks and State Government staff. State Governments have been requested to facilitate opening of new Bank accounts as a part of financial inclusion programme. 

9. The issuance of the new series of Rs.500/- notes has already commenced. 

10. Banks have been advised to increase the Business Correspondents limit of dispensing cash to Rs.2500/- for withdrawal from bank accounts. 

11. Banks have been advised to increase the exchange limit over the counter from the existing Rs.4000/- to Rs.4500/-.

12. Banks have been advised to increase the Cash Withdrawal limit at ATMs from the existing Rs.2000/- to Rs.2500/- per day in the recalibrated ATMs, other ATMs will continue to dispense Rs.50/- and Rs.100/- notes until they are recalibrated. 

13. The weekly limit of Rs.20,000/- for withdrawal from Bank accounts has been increased to Rs.24,000/-. The limit of Rs.10,000/- per day has been removed. 

14. Banks have been advised to increase the issuance and use of mobile wallets and debit/credit cards as also to provide them to those customers and establishments not having access to these non-cash means of payment

15. The last date for submission of the annual life certificate for the Government Pensioners which is to be submitted in November every year has been extended up to January 15, 2017. 

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