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Modi Government Takes Steps To Ease Impact From Banknote Ban: Key Facts

The government's demonetisation move was aimed at cracking down on the shadow economy, but has brought India's cash economy to a virtual standstill

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Prime Minister Narendra Modi shocked the country on November 8 by abolishing Rs 500 and Rs 1,000 currency notes, which accounted for 86 percent of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India's cash economy to a virtual standstill.

The government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its measures. They are detailed below in chronological.

November 25
RBI says old currency notes can be exchanged at RBI branches

November 24
Govt stops over the counter exchange of old banknotes; can only be deposited

Govt to ensure adequate cash supply for pensioners, armed forces personnel

Allows certain payments in old 500 rupees notes including at tolls, hospitals for limited time

November 23
Government says will offer Rs 21,000 crore in farm credit to farmers

November 22

RBI sets balance kept in prepaid wallets, cards (PPIs) at Rs 20,000 from Rs 10,000 till December 30

Merchants can transfer up to Rs 50,000 from PPIs to banks till December 30

Monthly limits on transactions via PPIs raised to Rs 20,000 for Rs 10,000 till December 30

RBI asks state-run Nabard to disburse up to Rs 23,000 crore for crop loans

November 21
RBI allows cash withdrawal of up to Rs 250,000 for wedding-related expenses

RBI allows farmers to withdraw up to Rs 25,000 a week from their loan, deposit accounts

RBI gives small borrowers 60 more days before loans of up to Rs 10 million are marked substandard

Govt allows farmers to purchase seeds from state-run outlets with old Rs 500 notes

November 18
RBI sets limit of cash withdrawal at card swiping machines at Rs 2,000 per day

November 17
Govt allows farmers to withdraw up to Rs 25,000 a week against the crop loans

Govt extends time limit for farmer to pay crop insurance premiums by 14 days

Cuts limit for over-the-counter exchange of old bills at banks to Rs 2,000 from Rs 4,500

November 15
Govt says banks must use indelible ink to ensure people change cash only once

November 14
Extends deadline for payments in old notes including for petrol for limited time

November 13
RBI raises cap on weekly cash withdrawals from banks to Rs 24,000 from Rs 20,000

Removes per-day withdrawal limit cap of Rs 10,000

Raises limit for over-the-counter exchange of old bills at banks to Rs 4,500 from Rs 4,000

Waives ATM fees for all transactions by savings bank customers til December 30

Govt increases withdrawal limits at recalibrated ATMs to Rs 2,500 /day from Rs 2,000

November 11

Extends deadline for payments in old notes including for petrol for limited time

November 8
Government abolishes Rs 500, Rs 1,000 currency notes in fight against 'black money'

Rs 500, Rs 1,000 notes must be tendered into banks, RBI by December 30

Caps exchange of old bills over-the-counter at banks at Rs 4,000

Caps cash withdrawals from bank accounts at Rs 10,000 per day till November 24

Caps cash withdrawals from bank accounts at Rs 20,000 per week till Novembe 24

Caps cash withdrawals from ATMs at Rs 2,000 per day per card till November 18

Caps cash withdrawals from ATMs at Rs 4,000 per day per card from November 19

Allows certain payments in old notes including for petrol for limited time


(Reuters)


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