Demonetisation: Use of old notes extended till November 24, micro-ATMs to give relief

New Delhi: The finance ministry on Monday announced that small businesses can withdraw Rs 50,000 in a week from banks (to allow them to pay wages), set up a task force under RBI deputy governor S.S. Mundra to ensue that ATMs are recalibrated fast and increased cash holding limit of banking correspondents to at least Rs 50,000.

The announcement of these and other new measures, aimed at making life a little easier for citizens and businesses struggling since Prime Minister Modi announced demonetisation of high-denomination currency notes, came after Prime Minister Narendra Modi held a review meeting on Sunday that lasted past midnight.

Following the meeting, RBI ordered banks to waive all types of ATM charges on saving bank customers from November 10 to 30 December, 2016. Banks will not charge any levy irrespective of the number of ATM transactions by saving bank customers at any branch during this period. The finance ministry also extended use of old Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees as well as purchase from co-operative stores till November 24 midnight. Railways too extended the use of old Rs 500 and Rs 1,000 currency notes to purchase tickets and for onboard catering till November 24.

To facilitate the smooth movement of passengers, collection of parking charges at all airports, including Delhi and Hyderabad, has been suspended till midnight of November 21, 2016. And for easy and fast movement of trucks and other vehicles, the government has extended the “no toll at national highways” measure till November 18.

Economic affairs secretary Shaktikanta Das said that ATMs are expected to start dispensing Rs 2,000 notes as soon as Tuesday.

Mr Das said that banking correspondents will now be allowed to replenish cash multiple times in a day against the earlier limit of once a day so that people in rural areas are able to get cash. During the meeting with the PM it was decided that supply of cash to post offices will be enhanced to facilitate cash withdrawals from postal accounts. “With 1.2 lakh BCs and 1.3 lakh branch post offices getting further activated, a total number of 2.5 lakh points in rural areas will be available to disburse cash and facilitate cash withdrawals from bank accounts,” said Mr Das.

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, they will allow banks to deploy them at places where there is huge need for cash, including hospitals.

Mr Das said adequate cash will be made available with District Central Co-operative Banks (DCCBs) to facilitate withdrawal from existing accounts.

All Central government departments and public sector enterprises are being instructed to use the method of e-payments to the maximum extent possible so that there is less pressure on banks for cash.