Check out the new RBI rules that will affect you in 2017. Effective from 31st December.
The Reserve Bank of India has increased the limit for daily cash withdrawal in ATMs to Rs4,500 up from the previous Rs2,500.
The deadline for returning the Rs 500 and Rs 1000 currency had been scheduled for Friday 30th. Those who missed this deadline have an allowance of up to 31st March to deposit the notes in RBI. PM Modi has been effective in helping with the transition. Two days to the deadline, he cleared a draft ordinance to end the legal liability of demonetized notes.
PM Modi Address to the Nation
In his address to the nation, the Prime Minister said the following regarding the notes:
“In the past few years, 500 and 1,000 notes were less in circulation and more in a parallel economy,” he said.
He continued to explain that “The amount of cash we had was not usual”
And that the “notes were bolstering inflation, black marketing, taking what is the right of the poor.”
The PM had been expected to make public new measures that will be used to fight with corruption, black money hoarders and benami property transactions. While commenting on corruption, he said: “Every city you see, has people with large bungalows and cars. Don’t you think the fight against black money and corruption deserves more power?”
When corruption and black money is brought up, political funding becomes a large part of it.
What are the New Rules?
Old Rs 500 & Rs 1000 notes
Their usage as legal tender has expired and should be deposited at RBI. The deadline for doing so was 31st December whereby holders could deposit in any given bank. According to the newly passed rules, being in possession of over 10 junked Rs500 and Rs1000 is a penal offense which will cost you Rs10, 000 in fine. The earlier four-year jail term has been loosened.
Foreigners: They have been limited to a weekly exchange of not more than Rs 5000.
Businessmen, traders: For current account holders, it stands up to Rs 50,000 a week, all in Rs 2,000 denomination notes. Traders registered with the APMC and mandis can withdraw up to Rs 50,000 a week from their current accounts. Merchants can enable withdrawal facility of up to Rs 2,000 per day at their point of sale terminals, without any charges levied.
E-wallets: The previous load limit of Rs10, 000 has been increased to Rs20, 000 per week. Merchants also have the option of making monthly transfer of up to Rs50, 000 directly to their bank accounts. There is no limit for each transaction.
Cash withdrawal limit: Holders of the savings bank accounts have a daily withdrawal limit of Rs4, 500 up from the previous Rs2, 500. Banks to collect PAN details of customers depositing more than Rs50, 000 in bank accounts not seeded with PAN. Withdrawal from Jan Dhan accounts is limited to Rs10, 000 per month for fully KYC compliant customers. For non or partial KYC compliant account-holders, it stands at Rs5, 000 within the overall Rs10,000 monthly ceiling. In case of KYC compliant Jan Dhan accounts, some amount of discretion to withdraw in excess of the monthly limit is given to branch managers subject to regulations.