Monday, November 14, 2016

Relief Extended To Common Men

Usage of ATMs – Waiver of customer charges
A reference is invited to the circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014 on rationalisation of number of mandatory free ATM transactions for savings bank account customers for transactions done at their own bank ATMs as well as at ATMs of other banks.
A reference is also drawn to Circular No.DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the withdrawal of legal tender characteristics of existing Rs.500/- and Rs.1000/- Bank Notes (Specified Bank Notes – SBN) and Circular RBI/2016-17/111 DPSS.CO.PD.No./02.10.002/2016-2017 dated November 8, 2016 on, inter alia, closure of ATMs and waiver of charges on withdrawals from ATMs till December 30, 2016.
2. In this regard, it has been decided that banks shall waive levy of ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at other banks’ ATMs, irrespective of the number of transactions during the month.
3. This waiver is applicable on transactions done at ATMs from November 10, 2016 till December 30, 2016, subject to review.
4. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).
Chief General Manager
Withdrawal of Legal Tender Character of Specified Bank Notes –
Expanding the distribution locations for deposit and withdrawal of cash
Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. With a view to widen the existing facilities to exchange/ deposit the specified bank notes and withdraw cash from their accounts, banks are advised to put in place the following additional measures so that member public enjoy as much convenience as possible in availing the facility.
Additional Facilities.
The current account holders (applicable to Current Accounts which are operational for last three months or more) are allowed to withdraw up to ₹ 50000 in a week. Such tenders will be disbursed predominantly in ₹ 2000 denomination only.
Banks may deploy their Micro ATMs (Bala Mitras, etc) near village Panchayat Offices, Police Stations/ Police and military Outposts, Government Departments, offices of Public Sector Units, Petrol Pumps and other similar secure locations. As it may entail larger volume of cash requirements, Banks may enhance the limits of the micro ATMs to at least ₹ 50,000 and allow frequent replenishment of cash to them.

For providing exchange / deposit/ withdrawal facility to people residing in remote/ unbanked areas, banks may consider using mobile vans.
Banks should, in a camp mode, open accounts for Tea/coffee and other plantation workers, employees of Sugar cooperatives, dairy farms and such other worker groups with concentrated payment locations so that they may be better served in terms of deposit into accounts and withdrawal therefrom.
We reiterate that in order to cope with the increased work load banks may consider hiring retired employees for a short period.

Monitoring
Banks have to ensure that the customers use separate pay-in-slips for depositing specified bank notes and other legal tender bank notes.(If a depositor has a mixed bunch of SBN and legal lender notes, he has to segregate them and submit two separate Pay-in slips). Banks have to put in place, within CBS, a mechanism to maintain a record of receipts of SBNs customer-wise and denomination wise whether for exchange or for deposit by way of a flag to facilitate subsequent verification.
Chief General Manager
Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes – Applicability of the Scheme to DCCBs
Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. It is clarified that District Central Cooperative Banks can allow their existing customers to withdraw money from their accounts upto ₹ 24,000/- per week upto November 24, 2016. However no exchange facility against the specified bank notes (₹ 500/- and ₹ 1000/-) or deposit of such notes should be entertained by them.

2. All banks are advised to permit withdrawal of cash by DCCBs from their accounts based on need. The cash withdrawal limit of ₹ 24,000/- per week is not applicable to withdrawal of cash by a DCCB from its account with any other bank.

The Reserve Bank of India has today clarified that District Central Cooperative Banks (DCCBs) can allow their existing customers to withdraw money from their accounts upto ₹ 24,000 per week upto November 24, 2016. However, no exchange facility against the specified bank notes (₹ 500 and ₹ 1000) or deposit of such notes should be entertained by them. The Reserve Bank has accordingly advised all banks to permit withdrawal of cash by DCCBs from their accounts based on need. The cash withdrawal limit of ₹ 24,000 per week is not applicable to withdrawal of cash by a DCCB from its account with any other bank.
Chief General Manager
Date : Nov 14, 2016
Constitution of Task Force for enabling dispensation of Mahatma Gandhi (New) Series Banknotes - Recalibration and reactivation of ATMs

It has become necessary to re-calibrate all ATMs/ Cash handling machines to dispense the new design notes following introduction of Mahatma Gandhi (New) Series Banknotes including a new High Denomination (₹ 2000) in new designs.
2. ATMs play a vital role in meeting the currency requirements of the public and have become a major channel for disbursement of cash. Re-activation of ATMs extends the availability and disbursal of notes for the customers of banks at convenient time and location in judicious mix of higher and lower denominations.
3. Re-calibration of ATMs involves multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies.
4. With a view to providing direction and guidance in this regard, it has been decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. The Task Force will comprise:
  • Representatives from Government of India, Ministry of Finance, Department of Economic Affairs, Member
  • Representatives from Government of India, Ministry of Finance, Department of Financial Services, Member
  • Representatives from Government of India, Ministry of Home Affairs, Member
  • Representatives from four banks with largest ATM network, viz., State Bank of India, Axis Bank, ICICI Bank and HDFC Bank, Member/s
  • Representative from NPCI, Member
  • Chief General Manager, Department of Currency Management, Member
  • Chief General Manager, Department of Payment and Settlement System, as Member Secretary
5. A representative each of ATM office equipment manufacturers (OEMs), Managed Service Providers, cash in transit (CIT) companies and white label ATM (WLA) operators will be invited to the Task Force’s deliberations. The Task Force may also invite others as may be needed.
6. The Terms of Reference of the Task Force would be as under:
Expeditious reactivation of all ATMs in a planned manner.
Any other matter germane to the above.
7. DPSS, CO will provide the secretarial support.
Principal Adviser
Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes – Revision in limits
Please refer to our Circular No.DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. On a review, certain modifications have been brought in the limits which are as under:
The limit for exchange of Specified Bank Notes, over the counter has been increased from the existing ₹ 4000/- to ₹ 4500.
The daily limit on withdrawal from ATMs has been increased from the existing ₹ 2000/- to ₹ 2500/- per day in the recalibrated ATMs, other ATMs will continue to dispense ₹ 50 and ₹ 100 bank notes until they are re-calibrated.
The weekly limit of ₹ 20000/- for withdrawal from bank accounts has been increased to ₹ 24000 and the daily limit of ₹ 10000/- per day stands withdrawn.
2. 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 upto January 15, 2017.

3. Banks are advised to make arrangements for separate queues for Senior citizens and Divyang (disabled) persons. Similarly, separate queues should also be arranged for those who come to exchange SBN for cash and those who come to deposit into bank accounts.
4. Banks are advised to increase the Business Correspondents’ limit of dispensing cash to ₹ 2500/- for withdrawal from bank accounts.
5. The above modifications take immediate effect.
6. Please acknowledge receipt.
Chief General Manager



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