Even after ten days of demonetisation, huge rush has been continuing at banks as people thronging bank branches across the country to exchange invalid currency notes and most of the ATMs run dry when public try to get cash for their daily needs. Though public get a relief today with ATMs getting calibrated to dispense Rs 500 notes, so soon such ATMs are running out of cash.
The government seems to be clueless on how to check huge rash at banks, besides exploring possibilities to meet the urgent requirements of needy people. Going back from its earlier decision of increasing daily cash withdrawals, Economic Affairs Secretary Shaktikanta Das said that the exchange limit for notes would be cut to Rs 2,000 from Rs 4,500 currently, effective from November 18
As farmers are facing big problem for cash with the onset of harvest season, the government has decided to allow them to withdraw up to Rs 25,000 per week from their designated bank accounts and a similar additional amount credited to their bank towards produce they sell to state agencies. This apart, traders who are registered with the Agricultural Produce Marketing Committees can withdraw up to Rs 50,000 per week for a smooth procurement process.
The government also allowed for families that had an upcoming wedding to withdraw Rs 2.5 lakh from the bank account of one family member, a move that would be a huge relief for the common man.
Meanwhile, prime minister Narendra Modi has received a big support from the Microsoft founder Bill Gates , who hailed this as a “bold move” and will deflate India’s shadow economy. The Prime Minister’s bold move to demonetise high-value denominations and replace with new notes with high security features is an important step to deflate India’s shadow economy,” Gates added.
