The Prime Minister Shri
Narendra Modi reviewed the position regarding the supply and availability of
currency notes yesterday late evening and took certain decisions to further
activate the dispensing of cash through the networks of Banking Correspondents (BCs),
Post Offices, ATMs, Banks and E-payment systems
The Prime Minister Shri Narendra Modi reviewed
the supply and availability of currency notes yesterday late evening
(13.11.2016). The meeting went on till past midnight. It was attended
among others by the Union Minister of Home,Shri Rajnath Singh, the Union
Minister for Finance and Corporate Affairs, Shri Arun Jaitley, Urban
Development and I&B Minister, Shri M.Venkaiah Naidu, MoS (Independent
Charge) for Coal & Power, Shri Piyush Goyal and MoS (Finance), Shri Santosh
Kumar Gangwar. It was also attended by the Governor and Deputy Governor
of Reserve Bank of India, all Secretaries of the Ministry of Finance and senior
officials from the PMO.
The Meeting took stock of the current status
of supply of cash and took certain decisions to further activate the dispensing
of cash through the networks of Banking Correspondents, Post Offices, ATMs,
Banks and E-payment systems. Following decisions were also taken
keeping in view the convenience of the public.
Banking Correspondents
(BCs) Network :
Banks will increase the cash holding limit of
BCs to at least Rs.50,000/- each. Banks will also allow higher limits in
appropriate cases.
Banks will replenish the cash with BCs
multiple times in a day as per requirement of the BCs.
BCs have wide presence in the rural
areas. Totally there are 1.2 lakh BCs in the country. The above
decisions will facilitate wider reach in the rural areas for exchange and
withdrawal of cash from Bank Accounts.
Postal
Network :
3. There are about 1.3 lakh Branch
Post Offices in the country. It has been decided to enhance the supply of
cash to Branch Post Offices to facilitate cash withdrawals from Postal
Accounts.
It may be noted that with
1.2 lakh BCs and 1.3 lakh branch Post Offices getting further activated, a
total number of 2.5 lakh points in rural areas will be available to disburse
cash and facilitate cash withdrawals from Bank Accounts.
ATM Network :
4. To expedite the process of recalibration of
ATMs, a Task Force is being set up under Deputy Governor, RBI consisting of
representatives of Banks and Finance Ministry. This Task Force will draw
up action plan and ensure implementation of this action plan for quick
recalibration of the ATMs to enable them to dispense new Bank notes of Rs.500/-
and Rs.2000/-.
5. In the meantime, Micro ATMs will be deployed
to dispense cash against Debit/Credit cards up to the cash limits applicable
for ATMs. The handheld Micro ATMs have the facility of mobility and
deployment at the required places.
Network and Reach of the Banks :
6. The withdrawal limit of Rs.20,000/- per week
has been enhanced to Rs.24,000/-. The withdrawal limit of Rs.10,000/- per
day has been removed.
7. The limit of Rs.4000/- for over the counter
exchange against old Rs.500/- and Rs.1000/- notes has been increased to
Rs.4500/-. This will enable the Banks to give lower denomination notes
for Rs.500/- while dispensing the remaining Rs.4000/- through Rs.2000/- notes.
8. The ATMs are progressively getting
recalibrated. As and when they are recalibrated, the cash limit of such
ATMs will stand enhanced to Rs.2500/- per withdrawal. This will enable
dispensing of lower denomination currency notes for about Rs.500/- per
withdrawal. Other ATMs which are yet to be recalibrated, will continue to
dispense Rs.2000/- till they are recalibrated.
9. Business entities having Current Accounts
which are operational for last three months or more will be allowed to draw
Rs.50,000/-per week. This can be done in a single transaction or multiple
transactions. This will enable the small business entities to pay wages
to their workers and make sundry payments.
10. Adequate cash will be made available with District Central
Cooperative Banks (DCCBs) to facilitate withdrawal from existing
accounts. The cash withdrawal limits for Banks will apply in case of
DCCBs also.
The above measures would substantially enhance
the reach of the banking system to exchange notes and facilitate cash
withdrawal from bank accounts.
E-Payments :
11. All Central Government Departments and Public Sector Enterprises
are being instructed to use the method of e-payments to the maximum extent
possible.
12. RBI has advised National Payments Corporation of India (NPCI) to
waive its transaction charges on transactions settled through National
Financial Switch(NFS) till 31st December, 2016.
13. Banks are also being advised to waive similar charges currently
levied by them.
Arrangements for
public convenience :
14. Banks have been advised to arrange separate queues in their
branches for senior citizens and divyang persons; customers for transactions
against accounts held with the Bank; and exchange of notes. There will,
therefore be, three or more separate queues in every branch.
15. Pensioners are required to submit Annual Life Certificate during
the month of November. This time limit has been extended up to 15th January,
2017.
16. The existing exemptions for acceptance of old Rs.500/- and
Rs.1000/- notes for certain types of transactions are being extended beyond 14th November,
2016 midnight up to 24th November, 2016 mid night.
There is enough cash in the system to meet the
requirement. Members of the public are, therefore, advised not to have
any sense of panic.
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DSM
Source : PIB, Release ID :153601
