Since PM Modi’s November 8 demonetisation announcement, new developments are occurring in response to how the country is handling the situation. After Sunday’s announcement that the exchange limit for old notes would be revised to Rs 4500 to 4,000; Economic Affairs Secretary Shaktikanta Das said the amount would be reduced to Rs. 2,000 starting Friday, November 18.
Exchange of the now discontinued Rs. 500 or/and 1,000 notes will be available “once per person till December 30“. The government has also asked banks to put an indelible ink stain on the consumers’ right index finger so they do not avail of the facility numerous times.
The withdrawal of Rs 500 and 1000 notes had led to a spate of postponements of wedding in the country. Mr Das has said Rs 2.5 lakhs in cash can be withdrawn from one account for the purpose of marriage.
Since the agriculture industry is heavily reliant on cash and in preparations for the sowing season, the government has permitted farmers to withdraw Rs 25,000 a week against a crop loan/kissan credit card. Agricultural traders are allowed to draw Rs. 50,000 per week in cash to pay for expenses like wages.
Those with debit cards can swipe their cards at state-owned petrol pumps to avail cash of up to Rs. 2000. However, in the beginning, only Point of Sale (POS) machines of State Bank of India will be able to dispense the cash.
The Election Commission of India asked the Finance Ministry not to use indelible ink on customers in banks. This is in order to avoid confusion in the upcoming polls in Arunachal Pradesh, Assam, Tripura, West Bengal, Madhya Pradesh, Tamil Nadu on November 19. The government had implemented the use of indelible ink on customers’ right index finger, after reports had emerged that black money hoarders were making innocent people stand in queues numerous times to exchange their untaxed cash.