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New series of Rs. 500 denomination notes introduced, withdrawal limits at ATMs increased

New series of Rs. 500 denomination notes introduced, withdrawal limits at ATMs increased

India Blooms News Service | | 13 Nov 2016, 09:22 pm
New Delhi, Nov 13 (IBNS): As new series of Rs. 500 denomination notes were introduced on Sunday, the Centre also directed banks to increase withdrawal limit from ATMs from Rs. 2000 to Rs. 2500 and exchange limit from Rs.4,000 to Rs. 4,500.

The Union Finance Ministry on Sunday reviewed the position regarding availability and distribution of all denomination of bank notes in different parts and regions of the country.

In the first four days (from November 10th to 13th , upto 5 pm ), about Rs Three (3.0) lac crore of old Rs 500 and 1000 bank notes have been deposited in the banking system and about Rs 50,000 crores has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATM’s or by exchange at the counter, read a government statement.

Within three four days, the banking system has handled about 21 crore transactions, it said.

The Ministry said banks have been advised to increase the Business Correspondents limit to Rs 2500 for withdrawal from bank accounts. 

Banks have been advised to increase the exchange limit over the counter from the existing Rs 4000 to Rs 4500.

"Banks have been advised to increase the Cash Withdrawal limit at ATMs from the existing Rs 2000/- to Rs 2500/- per day in the recalibrated ATMs," read the statement.

"The weekly limit of Rs.20,000/- for withdrawal from Bank accounts has been increased to Rs.24,000/-. The limit of Rs.10,000/- per day has been removed," it said.

The government has scrapped the Rs. 1000 and Rs. 500 notes with effect from Tuesday midnight to fight black money. 

In unprecedented scenes, millions of people since Thursday morning thronged in front of banks across the country to deposit the now-invalid Rs. 500 and rs. 1000 notes.

The Government asked the people to deposit their Rs. 500 and Rs. 1000 notes in banks within a specific time frame and get smaller denominations in exchange.

It has also  announced that deposits above Rs. 2.5 lakh will be taxed and could draw a 200 per cent penalty if found disproportionately higher than the account owner's income.

The banks have been asked to keep the details of PAN card of people depositing such large amounts over the 50-day period till Dec 30.

(Image by Avishek Mitra/IBNS)