In India old currency notes have been demonetized from 8th Nov 2016. From 10 November 2016, all citizens were allowed old notes exchange limit upto Rs.4000 one time. Last date for exchanging of old notes to get new notes was changed to 24-11-2016. After 24th November exchanging old notes cannot be don., it can only be deposited at bank accounts. This 4000 was not a daily limit, it was a one time limit for each person. Based on this many people utilized this situation by going to different bank branches and changing Rs.4000 old notes to get new currencies.
It was also found that many people were asked to exchange cash for others by filling out application form. This made Indian government put some restrictions on exchange of currency, to avoid black money from being changed. Ink marking on finger of people who exchange currency was implemented. Later limit of Rs.4000 was hiked by Rs.500 to a total of Rs.4500 per person from 14th November. Many people thought that they can exchange notes any number of times. This exchange was allowed only for one time for per person, who submitted correct details along with copy of identity card. Serial numbers of old currency notes was also asked to be written on application forms. These were steps taken by Reserve Bank of India to make it difficult for people to exchange black money.
From 18 November 2016, old notes exchange limit has been changed to Rs.2000. This was a major decision taken to prompt everyone to deposit money in their bank accounts. Through marking ink on finger and limiting to Rs.2000 for exchange of old notes RBI became successful against black money exchanging people. There was no restriction on amount that can be deposited in bank accounts by account holders. Government gave a warning that if account deposit limit exceeds Rs.2,50,000 for savings account, Rs.12,50,000 for current account there will be investigation by IT dept.
ATM charges were waived off for all online, debit, credit card restrictions till 30 December 2016.
Rs.500 and Rs. 1000 notes were accepted for payments at petrol pumps for few days. Old currency notes was also accepted for payment of utility bills like electricity, other government related fines, taxes .etc.
After demonetization of Indian currency there was long queues seen outside bank branches to exchange old notes. Application forms duly signed in with ID proof copy, serial number of old notes was required to change old Rs.500, 1000 notes.
There is a news report that as per direction of Indian Government, Reserve Bank of India will stop allowing exchange of old notes through banks from 24th November 2016. So after 24-11-16 exchange of old notes will not be possible. Only depositing old currency in accounts is possible.
If old notes exchange limit is cut off and only bank deposits is possible it will affect many people who thought that they could get time till 30 December 2016. As per new Central government circular old notes can be exchanged only till 24th November 2016. After 24-11-16 old currencies cannot be exchanged. it can only be deposited in bank accounts and after 30-1-16 it can be changed only through Reserve Banks of India (RBI) branches or offices.
Withdrawal limit from ATM’s per days is Rs.2500. For online, debit, credit card transactions there is no limit or fees.
Economic Affairs secretary Shaktikanta Das informed about new decisions by Government regrading withdrawal limits for citizens. Rs.24000 is present weekly limit for savings account. For current account withdrawal limit is Rs.50000 per week.
For weeding ceremonies also an amount up to Rs. 2.5 lakhs can be withdrawn once by any one family member including bride, bridegroom, father or mother. This withdrawal limit is applicable only on savings accounts that have KYC forms submitted.
For farmers special withdrawal limits have been given. In case of sanctioned crop loans Rs 25,000 per week can be withdrawn by farmers.