Latest Update on Currency Note Ban: 2 Lakh Crore Deposited
Currency ban is now been implemented and now it’s time to exchange Rs. 500 & 1000 notes at nearest bank or post office. From 11 November onwards, you can start withdrawing money from the ATM.
Here are the important updates on the happenings across India/new changes announced by the government post the ban implementation:
As on 17/12/2016:
- New income declaration scheme: After the 30th September 2016 deadline to declare unaccounted wealth, government has notified. Under this new scheme starting from 17th December till 31st March, individual will have to pay a tax of 30%, 10% penalty, and Pradhan Mantri Garib Kalyan (PMGKY) Cess of 33%. The overall tax sums to 50%. In addition to this, individuals will have to deposit 25% of the undisclosed income in PMGK deposit scheme.
- RBI has infused Rs. 5.5 trillion in new currency till now.
- Nearly 600 raids/searches have been carried out across India and cash currencies worth more than Rs. 300 crore have been seized. The new R. 2000 currency note worth Rs. 79 crore has been found.
- From 16th December onwards, the old Rs. 500 will not be accepted at medical shops and for making utility bill payments.
- Transaction limit via e-wallets have been increased from Rs. 10000 to Rs. 20000.
- India too start printing Rs. 10 plastic currency notes.
- Around 85% of ATMs have been calibrated to dispense new currency notes.
- Micro ATMs to be setup in rural areas to meet cash crunch, as these places are facing more difficulty in accessing banking services and ATMs.
- Non-banking entities can also setup their own ATMs known as White Label ATMs (WLAs)
- 0.75% discount to people using cards and e-wallets for petrol and diesel purchase.
- Rural areas with population above 8000 would be offered 2 point of sale machines (POS)
- Online railway ticket buyers will get free accident insurance cover worth Rs. 10 lakh.
- Users of sub-urban railways will get 0.5% discount on using digital payments.
- Public sector life insurance companies will offer 8% discount on buying policies.
- Public sector general insurance companies will offer 8% discount on buying health, motor, travel, home policies.
- No service tax will be levied on digital transactions of over Rs. 2000.
- Highway toll to get 10% discount.
- The invalid notes can now be deposited in the post office savings account. This was announced by Finance ministry.
- Amount deposited in Jan Dhan account has reached 21, 000 Crore.
- Survey conducted via the official Narendra Modi app on demonetization has received very good response. Over 5 lakh people participated in the survey till date. And here are the stats:
- 90% think that the move was BRILLIANT
- 73% gave it a 5 star rating
- 93% rated the government as either good or very good
- 2% rated the demonetization as one star
13/11/2016: New Rs. 500 notes dispatched: First consignment of the new Rs. 500 note has been dispatched to RBI, as per the statement by Currency Note Press (CNP).
12/11/2016: Over 2 Lakh Crore Deposited: People have deposited cash worth Rs. 47, 868 Crore between 10 & 11 Nov and few hours of 12 Nov. If all banks are included then the estimated cash deposit would be around Rs. 2 Lakh Crore.
12/11/2016: Tremendous increase in deposits of Jan Dhan Account: Launched in August 2014 most of the Jan Dhan Accounts opened had zero to no balance. However post the currency note ban, there are reports that there is a tremendous increase in the deposits of these accounts. The accounts which earlier had just Rs. 1 or 2, now have nearly Rs. 49, 000 each. And the number is expected to rise in the coming days.
12/11/2016: Speedy efforts are made to re-calibrate the ATM machine for the new Rs. 2000 note.
12/11/2016: Eye on everyone: Government will be keeping watch on every financial transaction especially jewelers, wholesalers, bullion traders.
Banned notes acceptable till
11 Nov, 2016 14 Nov only: Government announced that consumers can use Rs. 500 and 1000 notes at government hospitals, milk booths, petrol pumps, crematories and burial ground. These currencies can also be used to pay utility bills such as electricity, landline bills of central and state government only. Individuals can also pay various fees taxes, penalties etc. to central and state government through these demonetised notes. The notes would also be extended for making payments for buying cooking gas cylinder, metro rail tickets, highway and road toll, railway catering, electricity and water bills, buying medicines on doctor’s prescription. But remember the earlier last date for acceptance of these notes was 11 Nov but it has now been revised to 14 Nov.
Over 8, 800 cash carrying vans ensured that ATMs do not run out of cash. Over 35, 000 people involved in cash carrying vans worked effortlessly to make this success. It is estimated that the shortage of Rs. 100 note will take another 10 days to normalize. They are working round the clock to best meet the demand.
Support for demonetization: International monetary fund has supported the move. SIT team which manages Black Money has welcomed the government’s decision of demonetizing the notes.
New currency notes are out: Rs. 500 & Rs. 2000 notes are now back in the business. People are liking the design especially the new Rs. 2000 note.
Raids by IT department: Income tax department conducted raids on various jewelers, foreign exchangers and hawala operators who tried to trick the system. In exchange of old Rs. 500 & 1000 currency notes. These people were taking demonetised notes on discount. Or selling gold at prices higher than the market price. Rs. 50, 000 per 10gm was the price they were selling yellow metal. These shameless people were also seen selling foreign currency notes on exchange of the banned notes.
eCommerce companies: Will accept digital payments (cards or mobile wallets) for customers who’d opted for cash on delivery before 08 Nov, 2016. And CoD payment method has been scrapped by them. Few companies who have decided to offer new payment option in order to prevent business loss are Flipkart, Snapdeal, Box8, BigBasket, Myntra, Jabong, Grofers and many others. Few of the companies have named this payment mode as Wallet on Delivery or Pay Online after Delivery.
IT department notice: Income tax department will send notices to individuals who deposit large sum of cash in their bank account. The notice will ask the person to provide explanation to the source of such big amount. And strict action would be taken against suspicious individuals.
Read more on the details of demonetization of currency notes.
Large queues everywhere: Even before the banks opened their doors, people had started making queues to get the devalued notes exchanged. In famous markets such as Crawford market or Zaveri bazaar in Mumbai. As expected, daily wage workers and labourers were seen in largest number to get lower denomination notes i.e. Rs. 100 & 50. Everyone coming to bank had ID proof handy.
ATMs will be open now: ATMs will open from 11 Nov, 2016 onwards. This will ease burden on the banks.
Extended banking working hours: Most of the Indian banks such as ICICI, SBI, HDFC, Axis and others have sent notifications to their customers stating that banks will be open even on Saturday and Sunday. This has bought big relief to everyone as it will help millions of people to get exchange done in a hassle free manner and bring their life to normal. Banks have tightened their systems, people and they will serve best to the people.
Check out the positive impact on Indian economy because of currency ban.
Taxis and Auto rickshaws: On 09 Nov 2016, auto rickshaws were off the road due to non-availability of lower denomination notes with the consumers.
Mobile operators announcement: All mobile network service providers have notified their customers that they won’t be accepting Rs. 500 & 1000 notes.
Check out the effects of currency note ban on common man, industry and others.
UP election: Elections in the biggest state in India will see a huge impact especially on the expenditure related to the election which happens mostly in cash.
Surprise check by RBI: Reserve Bank of India inspectors may make surprise visits to bank branches to check any illegal alterations in the bank’s cash registers.
Daily update by banks: Every bank in India will have to submit daily count of Rs. 500 & 1000 currency notes.