Govt extends old notes exemption deadline to midnight Nov 24

The exemption deadline for all those services allowed to accept the old Rs. 500 and Rs. 1000 notes has been extended to the midnight of November 24, Economic Affairs Secretary Shaktikanta Das said on Monday.

These services include petrol pumps, pharmacies, and utility services amongst others, Mr Das added, saying that the private sector was included in these exemptions.

The withdrawal limit from ATMs has been increased to Rs. 2,500 but this will apply only to the recalibrated ATMs, the Secretary said.

Those businesses with current accounts with banks can withdraw up to Rs. 50,000 to pay wages.

Mr Das also sought to explain why ATMs are running out of cash so quickly. “Each ATM carries four trays. Three used to carry Rs. 500 and Rs. 1,000 notes. Those have to now be replaced and recalibrated and tested thoroughly so there are no mistakes of jamming, less money coming out, things like that. So only one tray is being used. That's why ATMs are getting exhausted so quickly.”

Union Finance Minister Arun Jaitley met Prime Minister Narendra Modi on Sunday night to apprise him of the progress of the demonetisation move.

“The Prime Minister's focus is not the strengthening and expansion of the banking system,” Mr Das told reporters. “The focus of the government is to activate all channels where cash is dispensed.”

Source:The Hindu