1. Demonetisation Effects: Now IAF will carry your cash to banks

Demonetisation Effects: Now IAF will carry your cash to banks

Stepping up its efforts to augment currency notes supplies to bring relief to cash-starved citizens of the country, PM Narendra Modi government has decided to take the help of Indian Air Force (IAF) to transport the newly-minted cash to the banks.

By: | New Delhi | Updated: November 14, 2016 4:00 PM
Stepping up its efforts to augment currency notes supplies to bring relief to cash-starved citizens of the country, PM Narendra Modi government today decided to take the help of Indian Air Force (IAF) to transport the newly-minted cash to the banks. (Representative image by Reuters) Stepping up its efforts to augment currency notes supplies to bring relief to cash-starved citizens of the country, PM Narendra Modi government has decided to take the help of Indian Air Force (IAF) to transport the newly-minted cash to the banks. (Representative image by Reuters)

Demonetisation Effects: Stepping up its efforts to augment currency notes supplies to bring relief to cash-starved citizens of the country, PM Narendra Modi government has decided to take the help of Indian Air Force (IAF) to transport the newly-minted cash to the banks, according to a report. Indications were there as the Finance Ministry today said there is enough cash in the system and delivery channels are being augmented across the country. Reports said that to mitigate their hardship Reserve Bank of India has already sent new currency notes to banks and ATMs in Jharkhand’s Bokaro by helicopters.

People across the country have been facing inconveniences due to paucity of cash. Prime Minister Narendra Modi on November 8 announced one of the most major reforms in Indian economy. The government has rendered all old Rs 500 and Rs 1000 notes worthless, and a massive exercise is underway to replace the legitimate currency of people with legal tender money. From November 10, long queues outside banks and ATMs are a common sight as people struggle to replace their old currency notes and withdraw legal tender money.

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Giving details of the high-level meeting chaired by Prime Minister Narendra Modi late last night, Economic Affairs Secretary Shaktikanta Das said it was decided to activate all channels for dispensing cash. With regard to rural areas, he said the cash holding limit for 1.2 lakh banking correspondents (BCs) has been increased to Rs 50,000 and banks have been given flexibility to increase this limit on case to case basis. It has been also decided to provide cash multiple times to the BCs, so that rural population is served. Besides, supply of cash to 1.3 lakh branch post offices would be enhanced so that public can get banknotes.

Together, these 2.5 lakh delivery points, mostly in rural areas, would be able to give bigger quantum of cash to the public, he added. For the urban population, Das said recalibration of ATMs has already started and they will start dispensing the new Rs 2,000 currency notes from today or tomorrow. However, he clarified that the higher cash withdrawal limit of Rs 2,500 is only for recalibrated ATMs. Additionally, a large number of micro-ATMs will be deployed to help people withdraw cash through debit cards.

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