1. Exchange limit of old Rs 500 and Rs 1000 lowered to Rs 2000 to reduce misuse: FM Arun Jaitley

Exchange limit of old Rs 500 and Rs 1000 lowered to Rs 2000 to reduce misuse: FM Arun Jaitley

Finance Minister Arun Jaitley has said that the exchange limit for old Rs 500 and Rs 1000 notes has been reduced from Rs 4,500 to Rs 2,000 to avoid misuse.

By: | Updated: November 17, 2016 2:36 PM
Demonetisation, Demonetisation news, latest news on Demonetisation, demonetisation exchange limit Asked when the new Rs 1000 note would enter circulation, the Finance Minister said that there is no plan to reintroduce the 1000 denomination note as of now.

Finance Minister Arun Jaitley has said that the exchange limit for old Rs 500 and Rs 1000 notes has been reduced from Rs 4,500 to Rs 2,000 to avoid misuse. Jaitley has also said that the decision to allow withdrawals of up to Rs 2.5 lakh from the bank account of a single family member for people with marriages will come as a big relief to the common man. Asked when the new Rs 1000 note would enter circulation, the Finance Minister said that there is no plan to reintroduce the 1000 denomination note as of now. Amidst growing anger over the lack of adequate cash at ATMs, Jaitley sought to assure that around 22,500 ATMs will be re-calibrated today. In total the country has nearly 2 lakh ATMs across banks.

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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. Re-calibration of an ATM is a process that involves changes in both hardware and software of the ATM, and is thus time consuming. Banks have been advised to provide all cash withdrawal transactions at their ATMs free of cost to their customers till December 30, 2016.

Also read: From calling it India’s ‘Lehman moment’ to ‘economic nasbandi’, Shankar Sharma disgusted with demonetisation

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. This implies that you can use your old notes at authorised public sector oil companies’ petrol, diesel and gas stations, government hospitals, railway ticket booking, ticket counters of government buses and airline ticket counters at airports.

You can also use them at milk booths authorised by state governments, crematoria and burial grounds, consumer co-operative stores authorised by State or Central government. The toll suspension for all national highways has been extended till midnight of 18th November. Also, parking at all Indian airports will be free until November 21.

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