ATMs to dispense Rs 2,500; banks to exchange Rs 4,500 per day

On day four of the Narendra Modi government’s demonetisation drive, the government raised withdrawal limits from banks and ATM machines, and said that people should complain to their district administration about businesses that are not accepting non-cash methods of payment. 

In a statement issued by the finance ministry on Sunday, the Centre said the per-person exchange limit over bank counters would be increased from Rs 4,000 to Rs 4,500, while cash withdrawal limits at recaliberated ATMs would raised from Rs 2,000 to Rs 2,500 a day. 

“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,” it said. 

The Centre also said it had started disbursing the new series of Rs 500 notes and was identifying rural pockets where availability of cash was a problem. 

The finance ministry said that till 5:00 pm on Sunday, around Rs 3 lakh crore worth of the now-invalid Rs 500 and Rs 1,000 denominated notes had been deposited in the banking system. “About Rs 50,000 crore has been dispensed to customers. Within four days, the banking system has handled about 18 crore (180 million) transactions,” the statement noted. 

The ministry added that it received reports of businesses, including some hospitals, caterers etc which were not accepting cheques/demand drafts and online payment transfers. It said customers should complain to the district administration concerned for action against such establishments. 

Additionally, chief secretaries of states were told to identify the rural pockets where availability of cash has been a problem so that last-mile distribution could be ensured. 

Banks were also told to make arrangements for separate queues for senior citizens and differently-abled people. Separate queues will also be arranged for converting old notes to cash over the counter and transactions against bank accounts. The last date for submission of the annual life certificate for government pensioners, which is to be submitted in November every year, has also been extended to January 15, 2017. 

“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,” it said. 

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