New Delhi, Nov 15 (DHNS): As the clamour for cash continued to rise across the country, the government on Monday set up a task force to speed up work on ATMs to dispense higher denomination notes.
The eight-member task force, under the chairmanship of RBI deputy governor S S Mundra, will comprise officials from banks and the ministries of home and finance. The team will chalk out a strategy to reactivate all ATMs on a war footing.
“The number of ATMs which will be recalibrated and which can dispense Rs 2,000 notes will be stepped up. To make this whole process faster, a task force was decided to be set up under the chairmanship of the RBI deputy governor,” Economic Affairs Secretary Shaktikanta Das told reporters here on Monday.
The decision was taken on Sunday night after Prime Minister Narendra Modi reviewed the impact of last week’s demonetisation of Rs 500 and Rs 1,000 notes. The meeting was attended by several Union ministers.
The task force will work closely with banks and agencies involved in the disbursement of cash and recalibration of ATM hardware and software, he said. The government has also formed a team of seven joint secretaries to monitor the supply of currency.
Each joint secretary has been assigned three or four states to make action plans, Das said. A large number of micro-ATMs will also be deployed across the country to facilitate disbursement of new currency.
Action in villages
In villages, where banking presence is low, the government will tap into the existing network of over 1.2 lakh active banking correspondents.
It has decided to increase their cash-holding limit to Rs 50,000, and the banks will have the flexibility to increase it further in special circumstances. Over 1.3 lakh branch post offices will be authorised to disburse more cash in rural areas.
For small biz
The ceiling for current accounts operational for at least three months has been increased to Rs 50,000 a day to help small businesses carry out payments.
Nearly 18 crore transactions have been done by the banking system in the past four days.
The government clarified the higher cash withdrawal limit of Rs 2,500 applies only to recalibrated ATMs.
The government also decided to extend the use of old Rs 500 and Rs 1,000 notes to pay for household utilities, fuel and purchases from co-operative stores. They can also be used to pay taxes and fees.
The notes can also be used for railway ticketing, railway catering, public transport, airline ticketing at airports, LPG gas cylinders, milk booths, crematoriums and burial grounds and petrol pumps for 10 days, till the midnight of November 24.
Old currency can also be used for purchases at consumer co-operative stores like Kendriya Bhandar, with valid ID proof, as also for paying court fees.
But payments towards utility bills will be restricted to individuals or households for arrears and current bills. No advance payments are allowed.
No ATM charges till Dec 30
In yet another move to lessen the woes of people facing a cash crunch, the RBI on Monday directed banks to waive ATM charges on all transactions of savings bank customers till December 30.
Exemptions continue till November 24 for scrapped Rs 500 and Rs 1,000 notes. You can use them to pay for household utilities, fuel, railway and airport tickets as well as purchases from co-operative stores
More cash coming to post offices. Micro-ATMs will be deployed across the country. Current accounts operational for the last three months can be used to draw Rs 50,000 a week.
Free for now
No charges on RTGS, NEFT transactions till December 31. No toll for vehicles on national highways till Nov 18