New Delhi: With banks struggling to cope with the rush to get alternative currency, the government has extended use of old defunct Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees and purchases from co-operative stores till November 24.
While withdrawing Rs 500 and Rs 1,000 notes from the night of November 8-9, the Centre had allowed use of the old currency at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds and petrol pumps for 72 hours and payments for metro rail tickets.
Some relief for traders: Centre allows to withdraw Rs 50,000 a week
After Prime minister Narendra Modi held a review meeting on Sunday that lasted past midnight, the finance ministry on Monday announced a series of new measures including to allow small businesses to withdraw Rs 50,000 in a week from banks (to allow them to pay wages), setting up a task force under RBI deputy governor S.S. Mundra to ensue that ATMs are recalibrated fast and increase cash holding limit with banking correspondents to Rs 50,000.
Following the meeting, RBI ordered banks to waive all type of ATM charges on saving bank customers from November 10 to December 30, 2016. Banks will not charge any levy irrespective of number of ATM transactions done by saving bank customers at any branch during this period.
The finance ministry extended use of old Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees as well as purchases from co-operative stores till November 24 midnight. In order to facilitate the smooth movement of passengers, collection of parking charges at all airports including Delhi and Hyderabad has been suspended till midnight of 21 November 2016.
The government has extended its order against charging toll at the national highways till November 18 to facilitate movement of trucks and other vehicles. Railways said it has also extended the use of old notes to purchase tickets and for onboard catering till November 24.
Economic affairs secretary Shaktikanta Das said that ATMs are expected to start dispensing Rs 2,000 notes as soon as Tuesday. At the meeting, the government decided to activate all channels for dispensing cash.
Mr Das said that banking correspondents will now be allowed to replenish cash multiple times in a day against earlier limit of once in a day so that people in rural areas are able to get cash. It was decided that supply of cash to post offices will be enhanced to facilitate cash withdrawals from postal accounts.
Till all ATMs are recalibrated, micro ATMs will be deployed to dispense cash against debit or credit cards up to the cash limits applicable for ATMs. As micro ATMs are mostly handheld it will allow banks to deploy them at places where there is a huge need for cash including hospitals. Mr Das said adequate cash will be made available with District Central Co-operative Banks.
