Demonetisation: Here are the govt's new measures to ensure everyone gets cash

Government has not only increase the withdrawal and exchange limits in banks and ATMs but also directed banks to guide 'anxious' customers in filling forms etc

In order to provide respite to cash-starved citizens, the government not only decided to increase the withdrawal and exchange limits in banks and ATMs across the country but also directed banks to guide  ‘anxious’ customers in filling the forms and provide customers waiting in queues with tea, coffee and biscuits.

Here are the different measures undertaken by the govt:

1. The government advised banks and the National Payment Corporation of India (NPCI) to waive charges on e-transactions till December 31. Following this, NPCI waived till year-end the switching fee for all RuPay issuing and acquiring member banks for point of sales and e-commerce transactions

 

2.The limit for various categories of withdrawals has been raised, exemptions extended till November 24, and micro-ATMs will be deployed in rural and semi-urban centres. 

3.The cash-holding limit for 120,000 banking correspondents, who form a crucial link in the rural monetary chain, has been increased to Rs 50,000 and banks have been given flexibility to increase this limit on a case-to-case basis. It has been also decided to provide cash multiple times to the banking correspondents. Supply of cash to 130,000 post offices would also be enhanced.

4.Banks may deploy their Micro ATMs (Bala Mitras, etc) near village Panchayat Offices, Police Stations/ Police and military Outposts, Government Departments, offices of Public Sector Units, Petrol Pumps and other similar secure locations.

5. For providing exchange / deposit/ withdrawal facility to people residing in remote/ unbanked areas, banks may consider using mobile vans.
 

6.Banks should, in a camp mode, open accounts for Tea/coffee and other plantation workers, employees of Sugar cooperatives, dairy farms and such other worker groups with concentrated payment locations so that they may be better served in terms of deposit into accounts and withdrawal therefrom.

7. Rail ticket bookings allowed with old nates till 24 November, tolls on highways have been suspended till 18 November and old currency can still be used to pay utility bills till 24 November.

8. Bankers said work on recalibration of ATMs for new currency notes had begun but it would take more than a week to cover a substantial part of the network.Cash management companies reported filling up ATMs had been affected because bank staff were under pressure at branches. It is taking far longer to get money for loading and carrying to ATMs. Only one-third of the usual number of ATMs had been filled in last two days.

9. Some banks have intensified use of micro-ATMs in remote areas. IDFC Bank has Aadhaar-enabled interoperable micro-ATMs at 1,000 unbanked locations in kirana stores, chemist shops and panchayat offices. 

10. Business entities having Current Accounts which are operational for last three months or more will be allowed to draw Rs 50,000 per week. This can be done in a single transaction or multiple transactions.

11. Parking at all Indian airports will be free until November 21.

12. Banks shall waive levy of ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at other banks’ ATMs, irrespective of the number of transactions during the month.his waiver is applicable on transactions done at ATMs from November 10, 2016 till December 30, 2016, subject to review.

There are reports that the government has decided to take the help of Indian Air Force (IAF) to transport the newly-minted cash to the banks.