Indian banks to exchange scrapped Rs500, Rs1,000 notes over weekend

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Indian banks to exchange scrapped Rs500, Rs1,000 notes over weekend

New Delhi - ATMs dry up amidst long queues at banks.

By Web Report

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Published: Fri 11 Nov 2016, 11:09 AM

Last updated: Wed 14 Dec 2016, 2:57 PM

Assuring people that their hard earned money is safe, the Finance Ministry on Friday said there is no need to panic and depositing junked Rs 500/1,000 notes of up to Rs 2.50 lakh in bank accounts will not be reported to the tax department.
It also cautioned people against depositing the money of unknown people in their own accounts or falling prey to cheats, thugs and rumour mongers.
Besides, the ministry said, farm income continues to remain tax free and can be easily deposited in bank.
Small businessmen, housewives, artisans, workers can also deposit cash in their accounts without any apprehensions, it added.
"Deposits up to Rs 2.50 lakh will not be reported to the Income Tax department. There will be no harassment or investigation. All honest citizen need not worry. Farmers' income is tax free and can be easily deposited in bank," the ministry said in newspaper ads.
Banks to remain open on weekend
The Reserve Bank of India issued a notification today, informing citizens that banks will shall remain open on Saturday and Sunday to meet the heavy demand.

Black money
In its biggest crackdown ever on black money, the government on Tuesday night announced demonetisation of Rs 500 and Rs 1,000 notes and asked people holding such notes to deposit in bank accounts.
Since Thursday people have been thronging banks amid concerns among people over exchanging and depositing the scrapped high denomination currency.
People can deposit old Rs 500 and Rs 1,000 notes in their accounts till December 30, 2016, without any limit. Restrictions have been imposed on withdrawal limit and people can withdraw up to Rs 10,000 per day or Rs 20,000 per week. This limit will be reviewed after few days.
Besides, old notes up to Rs 4,000 can be exchanged at any bank or post office till November 24, 2016, by showing photo ID proof.
ATMs can be used to withdraw up to Rs 2,000 per day per card till November 18 and Rs 4,000 from November 19 onwards. This limit too will be reviewed subsequently.
The ministry also advised people to make payments using cheques, demand drafts, debit or credit cards and electronic fund transfers and there is no restriction on such transactions.
ATMs dry up amidst long queues
Long queues outside banks and ATMs across India was a common sight on Friday as well.
The banks opened at 9 a.m. while the ATM's in some places would open at 12 noon, an official told IANS. Security around banks and ATM's has been beefed up following fears that people might get unruly once the new cash currency arrives.
In the last 24-hours, more than Rs 250 crore was deposited in 168 bank branches in the state capital alone, an official said while informing that more money inflow is likely to come in on Friday.
Facing shortage of cash for last two days, people in the country's financial capital and its suburbs rushed to ATM counters, witnessing long queues of residents anxious to withdraw some money to meet their daily expenses.
ATMs of various banks in south Mumbai, Lalbaugh, Parel, Dadar, Andheri, Ghatkopar and Mulund were found to be out of service and not dispensing money, forcing people to return empty-handed.
Early in the morning, shutters of some ATMs of State Bank of India, Lakshmi Vilas Bank, HDFC Bank, Bank of Baroda, Yes Bank and Dena Bank in suburban Mulund in Mumbai were down, while some went dry.
Banks across Kerala continued to witness heavy rush for the second day with people queuing up early to deposit Rs 1,000 and Rs 500 notes and to compound their problems, few cash vending machines that opened ran dry within hours.
(with inputs from IANS and PTI)

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