The government of India had made 86% of the currency notes in the country invalid by demonetizing 500 and 1000 rupees notes on Tuesday. This move rippled across the country and saw many people rushing to ATMs and banks to withdraw and exchange their 500 and 1000 rupees currency notes. This move also caused anxiety among the working class people and small businesses in India as not all the people were able to exchange their notes, despite standing in long queues at ATMs and banks. To subdue this panic, the government and banks of India, on Wednesday, announced that banks and ATMs across the country will remain open this weekend (on 12th and 13th of this month) to enable more people to withdraw and exchange their money. The Finance minister, Arun Jaitley said, “Through RBI’s currency chest, adequate currency is being provided in all banks and post offices. But it would require two to three weeks for complete adequate replacement. It would begin on Wednesday morning”. “Withdrawal limits of Rs. 2000 per day through ATM cards, Rs. 10,000 per day through bank cheque leaves and Rs. 20, 000 per week will continue for some time. As and when more currency comes into banking system, there will be a rethink on those limitations”, he added. Read more news on banks
“It should be clear that this is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply on sources of funds”, he said. “If the money is legitimate which had been previously withdrawn from bank or earned legally and saved and had been disclosed, there is nothing to worry about”, he added. Government officials said that honest tax payers as well as housewives and farmers with genuine savings have nothing to worry if they deposit old currencies in their bank accounts and take out replacement ones. However, tax authorities would keep a close watch on deposits of high amounts (in the order of crores) and send the details (such as PAN, passport and Adhar number) of such customers to the concerned department in the government to enable them to ‘crack the whip’ on such customers and make them pay 45% tax on their black money.
Government today, expanded the list of services where the withdrawn notes will be accepted till November 11th midnight. They include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from government and private pharmacies, LPG gas cylinders, railway catering and ASI monuments entry tickets. Banks and ATMs were shut on Wednesday to remove old Rs. 500/1000 notes and replace them with new hard-to-fake Rs. 500 and Rs. 2,000 currency notes. Fearing a steep increase in the number of footfalls to deposit or withdraw cash following the demonetization of Rs 500 and 1,000 banknotes, banks in India announced a slew of measures, including extension of banking hours and doing away with ATM charges and expanding credit limits.
This announcement by the banks and the government of India to extend banking hours and to work this weekend (on 12th and 13th of this month) to enable more people to withdraw and exchange their currencies will really help in easing the tension and pressure on people. The ATMs and banks will be less crowded everyday thanks to this move and moreover, people with busy work – schedules, who cannot take day – offs on weekdays to withdraw and exchange their currencies will be benefited immensely by this move. Some people can even exchange currencies in banks after their office working hours due to extended banking hours. This move by the government and the banks of India will solve even the temporary inconvenience caused by demonetizing 500 and 1000 rupees notes. We whole heartedly salute the government and banks of India for the wonderful moves to retrieve black money and solve the temporary inconvenience caused in the process. Read more on Startup News
Are you intrested to become guest author and write about business, Leadership or finance? Register and start Contributing your knowledge and experience.