Demonetization has become the hottest topic these days and the internet coverage has made it even more noticeable throughout the media. It all started with the announcement made by PM Narendra Modi on November 8th, 2016 about ban of all circulating Rs 500 and Rs 1000 notes. This decision was not only a great hit to Indian economy, but had affected common man’s day life measurably. In this situation, the added cherry on the top was daily-changing money exchange rules that has puzzled billions of common man’s routine. The rules for maximum limits on withdrawing money from banks, daily ATM withdrawal limits, places where old notes can be exchanged or accepted changes in every few days. Let’s have a look through the rules that has been announced and modified during this period.
On November 8th, the limit on daily exchange of old notes were Rs 4000 maximum, and the weekly bank withdrawal limit was Rs 20,000. The daily bank withdrawal limit was Rs 10,000 and daily ATM withdrawal limit was Rs 2,000. Also the old notes were acceptable in petrol pumps, airports, railways and governmental authorized shops. On Novemeber 10th, the places where old notes can be accepted included all metro stations, road toll plazas, medicine shops, ASI monuments, governmental educational institutions, taxes, governmental penalties, electricity bills and water bills.
On November 13th, the daily currency exchange limit was increased to Rs 4,500 from Rs 4,000 and daily ATM withdrawal limit was also increased to Rs 2,500. Two days after that, all Banks were instructed to make a mark on people’s fingers with indelible ink after exchanging money. On November 17th, the daily exchange limit was set back to Rs 2,000 after getting news of discrepancy by many people with exchanging notes by hiring other people. On the other hand, the weekly withdraw, limit for farmers were allowed to Rs 25,000 and for farm traders it was announced as Rs 50,000. An exception was announced for weddings with a withdrawal limit of 2,50,000 from an account. Another favor was announced for farmers by allowing them to buy seeds with old currency.
On November 24th, currency exchange process was stopped, but petrol pumps were instructed to accept the old Rs 500 notes till December 15th. For old Rs 1000 notes, they can only be deposited to bank accounts. On November 28th, RBI waived the withdrawal limit for those who have deposited new notes into their account. The weekly withdrawal limit remained same for other cases. Finally, on December 1st, the use of old Rs 500 notes in petrol pumps and airline ticketing center was set back to 2nd December from 15th of December.
Also, there were new amendments introduced to the new Income Tax Law 2016 regarding black money penalties to minimize chances of discrepancy. The rules were introduced, changed, taken back many a time to minimize the chances of the discrepancy, but the question of normal public’s day life remained same and measurable with spending days in bank and ATM queues.
Source : https://www.evernote.com/shard/s324/sh/66244ecf-ff92-4fc0-b6ac-a1ae4254c0f7/4acb82127eda572c520c2bb899c1a43b
Also Read : Guidelines to Formalities Required For ITR-5 Form
On November 13th, the daily currency exchange limit was increased to Rs 4,500 from Rs 4,000 and daily ATM withdrawal limit was also increased to Rs 2,500. Two days after that, all Banks were instructed to make a mark on people’s fingers with indelible ink after exchanging money. On November 17th, the daily exchange limit was set back to Rs 2,000 after getting news of discrepancy by many people with exchanging notes by hiring other people. On the other hand, the weekly withdraw, limit for farmers were allowed to Rs 25,000 and for farm traders it was announced as Rs 50,000. An exception was announced for weddings with a withdrawal limit of 2,50,000 from an account. Another favor was announced for farmers by allowing them to buy seeds with old currency.
On November 24th, currency exchange process was stopped, but petrol pumps were instructed to accept the old Rs 500 notes till December 15th. For old Rs 1000 notes, they can only be deposited to bank accounts. On November 28th, RBI waived the withdrawal limit for those who have deposited new notes into their account. The weekly withdrawal limit remained same for other cases. Finally, on December 1st, the use of old Rs 500 notes in petrol pumps and airline ticketing center was set back to 2nd December from 15th of December.
Also, there were new amendments introduced to the new Income Tax Law 2016 regarding black money penalties to minimize chances of discrepancy. The rules were introduced, changed, taken back many a time to minimize the chances of the discrepancy, but the question of normal public’s day life remained same and measurable with spending days in bank and ATM queues.
Source : https://www.evernote.com/shard/s324/sh/66244ecf-ff92-4fc0-b6ac-a1ae4254c0f7/4acb82127eda572c520c2bb899c1a43b
Also Read : Guidelines to Formalities Required For ITR-5 Form
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