Demonetisation: Deadline to deposit the junked Rs 500, Rs 1,000 notes in banks ends

New Delhi: The 50-day deadline to deposit the junked Rs 500/1,000 notes in banks has come to an end but clarity still eludes on whether the weekly withdrawal limit of Rs 24,000 would be eased or not.

Finance Minister Arun Jaitley said that RBI has enough currency and situation of cash supply has improved significantly.

Asked when curbs on withdrawal would be removed, Jaitley said when the decision will be taken, it will be made public.

People still have time to exchange the currency notes at designated RBI counters till March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30.

The government has come out with an ordinance making possession of old Rs 500/1,000 notes beyond a specified limit for numismatic purposes illegal and punishable.

Prime Minister Narendra Modi in a surprise announcement on November 8 declared the Rs 500 and 1,000 notes invalid.

The banks started accepting deposits in scrapped notes from November 10. However, very few ATMs opened on November 11, as most of the machines had to be recalibrated for dispensing the new Rs 2,000 and Rs 500 notes.

Meanwhile, cash withdrawal limit from ATMs will be increased to Rs 4,500 per day from the current Rs 2,500 from January 1.

On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing Rs 2500- to Rs 4500/- per day per card, informed RBI.

There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of Rs 500.