Demonetisation: A timeline of flip-flops since November 8
Demonetisation: A timeline of flip-flops since November 8
Prime Minister Narendra Modi shocked the country on November 8 by abolishing 500 and 1,000 rupee notes, which accounted for 86% of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India`s cash economy to a virtual standstill.
The 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.
November 26
- RBI says banks need to temporarily transfer deposits between September 16 and November 11 under CRR.
November 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 5,000 per week till December 15
November 24
- Govt stops over the counter exchange of old banknotes; can only be deposited
- Govt to ensure adequate cash supply for pensioners, armed forces personnel
- Allows certain payments in old 500 rupees notes including at tolls, hospitals for limited time
November 23
- India govt says will offer Rs 210 billion in farm credit to farmers
November 22
- RBI sets balance kept in prepaid wallets, cards (PPIs) at 20,000 rupees from 10,000 til December 30
- Merchants can transfer up to 50,000 rupees from PPIs to banks til December 30
- Monthly limits on transactions via PPIs raised to 20,000 rupees for 10,000 til December 30
- RBI asks state-run Nabard to disburse up to 230 bln rupees for crop loans
November 21
- RBI allows cash withdrawal of up to 250,000 rupees for wedding-related expenses.
- RBI allows farmers to withdraw up to 25,000 rupees a week from their loan, deposit accounts.
- RBI gives small borrowers 60 more days before loans of up to Rs 10 million are marked substandard.
- Govt allows farmers to purchase seeds from state-run outlets with old 500 rupee notes.
November 18
- RBI sets limit of cash withdrawal at card swiping machines at Rs 2,000 per day
November 17
- Govt allows farmers to withdraw up to 25,000 rupees a week against the crop loans.
- Govt extends time limit for farmer to pay crop insurance premiums by 14 days.
- Cuts limit for over-the-counter exchange of old bills at banks to 2,000 rupees from 4,500.
November 15
- Govt says banks must use indelible ink to ensure people change cash only once
November 14
- Extends deadline for payments in old notes including for petrol for limited time
November 13
- RBI raises cap on weekly cash withdrawals from banks to 24,000 rupees from 20,000
- Removes per-day withdrawal limit cap of 10,000 rupees
- Raises limit for over-the-counter exchange of old bills at banks to 4,500 rupees from 4,000
- Waives ATM fees for all transactions by savings bank customers til December 30
- Govt increases withdrawal limits at recalibrated ATMs to 2,500 rupees/day from 2,000 rupees
November 11
- Extends deadline for payments in old notes including for petrol for limited time.
November 8
- India abolishes 500, 1,000 rupee notes in fight against `black money.`
- 500, 1000 rupee notes must be tendered into banks, RBI by December 30.
- Caps exchange of old bills over-the-counter at banks at 4,000 rupees.
- Caps cash withdrawals from bank accounts at 10,000 rupees per day till November 24.
- Caps cash withdrawals from bank accounts at 20,000 rupees per week till November 24.
- Caps cash withdrawals from ATMs at 2,000 rupees per day per card till November 18.
- Caps cash withdrawals from ATMs at 4,000 rupees per day per card from November 19.
- Allows certain payments in old notes including for petrol for limited time
(Compiled by Rafael Nam and Swati Bhat)
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