Recap on what RBI did from Nov 8 to Dec 30

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With the 50-day period window for exchanging/depositing old notes of Rs 500 and Rs 1000 getting over on December 30, here’s a look at all the steps taken by the Reserve Bank of India to ensure enough cash is available in the banking system:-

November 8, 2016:

–Government declares existing Rs 500 and Rs 1000 notes illegal.

–RBI says starting from November 10, anyone can tender them at any office of the Reserve Bank or any bank branch and obtain value thereof by credit into their respective bank accounts.

–Says public can exchange up to Rs 4000 over counter with identity proof.

–Cash withdrawals from bank accounts will be restricted to a limited amount of Rs 10,000 per day subject to an overall limit of Rs 20,000 a week from November 9, 2016 till end of business on November 24, 2016.

–Announces issuance of new Rs 500 and Rs 2000 notes.

November 9:

–RBI says banks will be open on November 12 and 13, Saturday and Sunday respectively.

November 10:

— RBI says all payment Systems (RTGS, NEFT, Cheque Clearing, Repo, CBLO and Call markets) will be open on November 12 and 13, Saturday and Sunday respectively.

November 11:

–RBI says enough cash available with banks, adds it could take a while for the banks to recalibrate their ATMs

–Once ATMs are functional, members of public can withdraw from ATMs upto a maximum of Rs 2,000 per card per day up to November 18, and after that withdraw up to Rs 4000 per day per card.

November 12:

–RBI says on November 10, about 10 crore exchange transactions were reported.

–Asks public to not rush to exchange putting avoidable strain on the banking branch network.

–Asks public to switch over to alternative modes of payment, such as pre-paid cards, Rupay/Credit/Debit cards, mobile banking, internet banking.

November 13:

–Says daily limit on withdrawal from ATMs has been increased from the existing Rs 2000 to Rs 2500 per day in the recalibrated ATMs

–Says weekly limit of Rs 20000 for withdrawal from bank accounts has been increased to Rs 24000; daily limit of Rs 10000 per day withdrawn.

November 14:

–RBI decides banks will waive levy of ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at other banks’ ATMs, irrespective of the number of transactions during the month.

–District Central Cooperative Banks (DCCBs) can allow their existing customers to withdraw money from their accounts upto Rs 24,000 per week upto November 24.

–Says no exchange facility against the specified bank notes (Rs 500 and Rs 1000) or deposit of such notes should be entertained by them.

–Sets up a task-force under chairmanship of S S Mundra, Deputy Governor, RBI for for enabling dispensation of new banknotes and recalibration and reactivation of ATMs.

November 15:

–Asks Urban Cooperative Banks through its Regional Offices and the State Cooperative Banks through National Bank for Agricultural and Rural Development (NABARD) to ensure strict compliance of rules for exchange and deposit of old notes.

–Says while exchanging notes, bank branch and post offices would put indelible ink mark on the right index finger of the customer, to identify that he/she has exchanged the old currency notes only once

November 17:

–Says there is sufficient supply of notes consequent upon increased production which started nearly two months ago.

–Asks public not to panic or hoard currency notes.

–Says it has been decided that the limit of exchange of old notes, across the counter of the banks will be Rs 2000 with effect from November 18

–This facility will be available only once per person.

November 18:

–Says limit for cash withdrawal at POS has been made uniform at to Rs 2000 per day across all centres (Tier I to VI) for all merchant establishments enabled for this facility

–Customer charges, if any, being levied on all such transactions, waived till December 30.

November 20:

–Clears confusion over some persons suspecting genuineness of Rs 10 coins

–Asks public to accept these coins as legal tender in all their transactions without any hesitation.

–Says ATM withdrawal limits unchanged

November 21:

–For weddings, says that maximum of Rs 2.5 lakh can be withdrawn from bank account, only if account is fully KYC compliant

–Says amount can be withdrawn only if the date of marriage is on or before December 30

–Withdrawals can be made by either of the parents or the person getting married.

–Says farmers can withdraw upto Rs 25000 per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts subject to their accounts being compliant with the extant KYC norms.

November 22:

–Says some persons are helping others hoard cash in their accounts, including Pradhan Mantri Jan Dhan Yojana accounts.

–Cautions public against exchanging /dealing in specified bank notes in unauthorised manner; says this is illegal and liable to strict punitive action.

–Enables special dispensation for small merchants whereby Prepaid Payment Instruments (PPIs)s issuers can issue PPIs to such merchants

–Says balance in such PPIs cannot exceed Rs 20,000 at any point of time, but merchants can transfer funds from such PPIs to their bank accounts upto Rs 50,000

–For weddings, says declaration with list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account to be given

–This is where the amount proposed to be paid is Rs 10,000 or more. The list to indicate the purpose for which the proposed payments are being made.

November 24:

–Says old Rs 500 and Rs 1000 notes can no longer be exchanged at banks after midnight of November 24, deposit allowed

–Says RBI counters will exchange them as per current limits

November 26:

–Says on the increase in net demand and time liabilities (NDTL) between September 16 and November 11, scheduled banks shall maintain an incremental CRR of 100 per cent, effective the fortnight beginning November 26

–Says this will be reviewed on December 9

November 28:

–From November 10 upto November 27, says banks have reported that such exchange/deposits effected amounted to Rs 8,44,982 crore.

–Says that the public have withdrawn, during this period, Rs 2,16,617 crore from their accounts either over the counter or through ATMs.

December 1:

–Asks bankers, public to only abide by those instructions which are either uploaded on RBI’s official website or sent from their official email

December 2:

–Says that the Indian Government of India has, on the recommendation of RBI has decided to revise the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion.

December 8:

–During the period from November 10, 2016 and December 7, 2016, RBI says banks reported notes worth Rs 4,27,684 crore have been issued to public either over the counter or through ATMs.

December 12:

–Clarifies that it has not initiated any action to cancel the banking licence of Axis Bank

–This was in wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in few branches of the bank.

December 13:

–RBI deputy governors S S Mundra and R Gandhi brief agencies about currency issues

–Say entire system has been continuously gearing up for supporting the circulation of notes in the hands of the public

–Say looking into suspicious transactions in bank branches

December 19:

–Says old notes in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30

–Says credit will be done only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation

December 21:

–Says the earlier issued norms for depositing cash over Rs 5000 will not apply to fully KYC compliant accounts.

December 30:

–RBI says that daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing Rs 2500 to Rs 4500 per day per card.

–No change in weekly withdrawal limits.

–Such disbursals should predominantly be in the denomination of Rs 500

–Says White Label ATM operators can source cash from retail outlets

–Says enhancements in the limits of semi-closed PPIs issued will continue