No cash to fill ATMs, never-ending queues and more: Demonetisation roundup

The effects of the government's demonetisation scheme is in full swing as long queues form outside ATMs and banks, with anxious citizens waiting to finally get some cash in their pockets or exchange their old currency notes. With the ATMs finally opening today, and greater clarity emerging on how the process of transitioning to the new series of currency notes will take place, some people might find relief. 

Here are the top developments since Prime Minister Modi's surprise Tuesday announcement:

1) ATMs run dry: Many ATMs across the country ran out of cash in the span of a few hours on Friday, as there was heavy rush to withdraw lower denomination currency notes. Most of the machines were equipped to tender Rs 100 notes, while some were still not working. there is a severe shortage of 100 and 50 rupee notes. Further, the ATMs have to be reconfigured to stock and dispense smaller denomination notes as against the 500 and 1,000 rupee notes stocked earlier.Each ATM will have four cassettes/cash slots. Two will be used for higher denomination notes and two for lower denomination. Each cassette can hold only 2,500 new notes. However, there was no cash to fill even the two cassettes for people to withdraw. (Read more)

2) New higher denomination notes coming to an ATM near you: Reports quoted banks saying that they are trying to recalibrate their ATMs for higher denomination notes. However, it would take some days before they could start tendering the new high security Rs 500 and Rs 2,000 notes. 

3) New rules at airports: With fears that black money holders will use airline counters as a loophole to transact in cash, the government has instructed airlines to make PAN cards mandatory for transactions above Rs 25,000. Also, bookings made via cash payment till Friday midnight have been made non-refundable. (Read more)

4) Rs 1,000 notes to make a comeback: On Thursday, Economic Affairs Secretary Shaktikanta Das said that currency notes of Rs 1,000 would be reintroduced in next few months with a new dimension, design and security features. Das added that all denomination of notes would be reintroduced with new design and new features in the coming months. (Read more)

5) No hassle for small depositors: Also on Thursday, Finance Minister Arun Jaitley attempted to calm frayed nerves and said that nobody would be harassed over smaller deposits by the tax authorities. As people lined up in banks across the country to exchange their old notes for the new currency,  Jaitley assured that deposits less than Rs 2.5 lakh would not attract any action. (Read more)

6) Tax raids kick in the door: If Thursday's assurance that tax authorities would not go after small depositors came as a relief, the Income Tax department  did not sit idle on its part, and conducted multiple raids in Delhi, Mumbai and other cities on Thursday in the wake of reports of alleged profiteering and subsequent tax evasion by traders who were converting withdrawn currency notes in an illegal manner. (Read more)

7) New Rs 500 notes still MIA: On Thursday, as millions of people across the country stood in queues outside banks on to exchange their now-defunct Rs 500 and Rs 1,000 notes with new Rs 2,000 notes, or simply withdraw some money, they were given a mix of the new Rs 2,000 and still legal Rs 100 notes. According to reports, this was because, till then, banks still had not received the new set of Rs 500 notes. (Read more)

8) Relief on utility bills till Friday midnight: On Thursday, in a bid to ease the burden on common people, the Centre announced that old Rs 500 and Rs 1,000 notes could be used to pay utility bills, taxes, penalty and fees to central and state governments till midnight of November 11. (Read more)

9) Tax penalties for large deposits: On Wednesday, the government announced that large deposits made into banks, of over Rs 2.5 lakh, could attract penalty consisting tax amount plus 200 per cent in the case of income mismatch. (Read more) 

10) For NRIs and foreigners with Indian currency: It was also revealed on Wednesday that those holding old currency but living abroad would have to come to India within the next six months and get the currency notes deposited in banks or get the amount exchanged. They can get it exchanged till March from the Reserve Bank of India.