RBI Revamps Note-Ban Policies; Withdrawal Limit Extends

Demonetization has been shaking the buy-and-purchase pattern of Indian economy since 9 November 2016. But now, cash transactions are making their comeback gradually. The situation of cash crunch is going under control a bit.

To let the laymen as well as non-residents heave a sigh of relief, the Reserve Bank of India (RBI) has revamped note-ban policies. From 28^th February, 2017, the revised demonetization policies shall be executed. 

• RBI has granted grace period to emigrants, who were not physically present in India between 6^th November, 2016 and 31^st December 2016 for exchanging their money from its branches in New Delhi, Mumbai, Chennai, Kolkata and Nagpur till 31^st March, 2017. Whilst, non-residents of India (NRIs) have more grace period till 30^th June, 2017 for exchanging junked currency. 

• The NRIs have to showcase the sources of the scrapped currency notes. Then only, they will be able to get the sum exchanged. For doing so, the RBI asks for the stamped declaration from customs at the time of entry in India.  

• The weekly cash withdrawal will be revised from 28^th February 2017. The cash-withdrawal limit on saving account shall be raised from the current INR 24,000 to INR 50,000 per week.

• Withdrawal shall be exempted from all limits from 13^th March, 2017. It implies that bank account holders will be able to withdraw their deposited amount up to the limit that their will allows.

• Current account holders can enjoy unlimited withdrawal through ATMs since 1^st February, 2017. Earlier, the withdrawal from this kind of account was enhanced from INR 50,000 to INR 100,000 from 16^th January, 2017.   

• The tax department has gone active. It has sent circular to all banks regarding reports of deposits. Since demonetization was introduced to stop black-money parking, the tax department is keeping hawk-eyes on the accounts that aggregated INR 10 lakhs in a year and also paid cash worth INR 1 lakh or more on credit bills.

• Since deposition of scrapped notes of 500 & 1000 has been discontinued, the upkeep of such currency notes shall be considered as an offence. The keeper shall be responsible for facing off penalty.

• However, OCIs and PIOs can’t enjoy the grace period for exchanging scrapped money. The Indian diaspora has filed a petition in this regard to the honourable prime minister of India.

Various websites, like S2NRI.com and media companies are keeping close watch on the recent happening to update people. According to them, the economy is going to attain its smooth transaction, including CODs (Cash on Deliveries) despite several hurdles. The ATM kiosks and banks are availing requisite amount to the buyers. No sooner, the whole system will be back in the system.