The exchange of the abolished Rs 500 and Rs 1000 notes came to an end this Friday. The demonetisation worries seemed to be lessening with the passing time as we saw shorter queues outside ATM’s and banks. The government announced another relief for the commoners as the ATM withdrawal limit which was currently Rs 2500 is being increased to Rs 4500 per account following January 1.
However, the weekly limit per bank account remains the same at Rs 24,000 as the government is trying hard to match the demonetised currency with the new one.
Here are some key developments in the story :
- Prime Minister Narendra Modi will address the country today evening to discuss the impact of his abrupt demonetisation drive.
- The RBI has asked banks to submit details of the deposits made in the outlawed currency. It is estimated that more than 90% of the cancelled notes have been already deposited in banks, which means that the government’s intention of removing black money may have missed its mark.
- Many top industrialists and financial experts have praised the PM’s call to move towards a digital economy, but some industries have ground to a halt and laid off staff, highlighting India’s huge dependence on cash.
- The serpentine queues outside banks have thinned down but a single 2,000-rupee note is still all that most ATMs dispense to customers. The RBI, while easing the restrictions on ATM withdrawals, has asked banks to ensure that the new 500-rupee notes are dispensed from cash machines. So far, these notes have been in very short supply.
- Only 35-40 percent of ATM machines are currently dispensing cash, according to Ramaswamy Venkatachalam, managing director, India and South Asia, Fidelity Information Services, a banking technology provider.
- Economists expect the economy to benefit in the long term due to an increase in tax revenues but only once there is a plentiful supply of those elusive new notes in circulation.