Government takes steps to ease impact from banknote ban. Here are details

The new notes of Rs 500 and Rs 1000 denomination PicAFPIndias Prime Minister Narendra Modi shocked the country on November 8 by abolishing 500 and 1000 rupee notes which accounted for 86 percent of the cash in circulation The move was aimed at cracking down on the shadow economy but has brought Indiascash economy to a virtual standstillThe government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its measures They are detailed below in chronological orderNovember 8 India abolishes 500 1000 rupee notes in fight against black money 500 1000 rupee notes must be tendered into banks RBI by Dec 30 Caps exchange of old bills overthecounter at banks at 4000 rupees Caps cash withdrawals from bank accounts at 10000 rupees per day till Nov 24 Caps cash withdrawals from bank accounts at 20000 rupees per week till Nov 24 Caps cash withdrawals from ATMs at 2000 rupees per day per card till Nov 18 Caps cash withdrawals from ATMs at 4000 rupees per day per card from Nov 19 Allows certain payments in old notes including for petrol for limited timeNovember 11 Extends deadline for payments in old notes including for petrol for limited timeNovember 13 RBI raises cap on weekly cash withdrawals from banks to 24000 rupees from 20000 Removes perday withdrawal limit cap of 10000 rupees Raises limit for overthecounter exchange of old bills at banks to 4500 rupees from 4000 Waives ATM fees for all transactions by savings bank customers til Dec 30 Govt increases withdrawal limits at recalibrated ATMs to 2500 rupeesday from 2000 rupeesNovember 14 Extends deadline for payments in old notes including for petrol for limited timeNovember 15 Govt says banks must use indelible ink to ensure people change cash only onceNovember 17 Govt allows farmers to withdraw up to 25000 rupees a week against the crop loans Govt extends time limit for farmer to pay crop insurance premiums by 14 days Cuts limit for overthecounter exchange of old bills at banks to 2000 rupees from 4500November 18 RBI sets limit of cash withdrawal at card swiping machines at 2000 rupees per dayNovember 21 RBI allows cash withdrawal of up to 250000 rupees for weddingrelated expenses RBI allows farmers to withdraw up to 25000 rupees a week from their loan deposit accounts RBI gives small borrowers 60 more days before loans of up to 10 mln INR are marked substandard Govt allows farmers to purchase seeds from staterun outlets with old 500 rupee notesNovember 22 RBI sets balance kept in prepaid wallets cards PPIs at 20000 rupees from 10000 til Dec 30 Merchants can transfer up to 50000 rupees from PPIs to banks til Dec 30 Monthly limits on transactions via PPIs raised to 20000 rupees for 10000 til Dec 30 RBI asks staterun Nabard to disburse up to 230 bln rupees for crop loansNovember 23 India government says will offer 210 billion rupees in farm credit to farmersNovember 24 Government stops over the counter exchange of old banknotes can only be deposited Government to ensure adequate cash supply for pensioners armed forces personnel Allows certain payments in old 500 rupees notes including at tolls hospitals for limited timeNovember 25 RBI expands basket of securities that can be accepted for collateral under money market ops RBI says old currency notes can be exchanged at RBI branches RBI says tourists can exchange foreign currency worth up to INR 5000 per week till Dec 15November 26 RBI says banks need to temporarily transfer deposits between September 16 and Nov 11 under CRRNovember 28 Govt announces tax amnesty scheme for unreported cash will charge 50 pct in taxes surcharges People would also have to park quarter of total sum in noninterest bearing deposit for 4 yrs RBI to allow withdrawals above 24000 INR weekly limit of deposits made in legal tender Those withdrawals would be in new 2000 500 rupee billsNovember 30 RBI allows banks to use all cash to meet hiked cash reserve requirement ratio RBI tightens monthly withdrawal rules from Jan Dhan accounts for poor