Current Affairs for IAS Exams – 18 November 2016
:: National ::
Govt come up with measures
All new bank accounts, except those opened under the Jan Dhan Yojana, and time deposits in banks, post offices and co-operative banks will now require a PAN card.
Even as the Centre eased its demonetisation norms to facilitate cash flows for farmers and families of couples about to get married.
Up to Rs. 2.5 lakh each can be withdrawn by the prospective bride and groom’s family for their wedding expenses and farmers can withdraw up to Rs. 25,000 a week, even as the Centre reduced the exchange limit for old notes to Rs. 2,000 from the Rs. 4,500 earlier.
Debit card holders can now withdraw up to Rs. 2,000 from their accounts by swiping their cards at select petrol pumps with SBI POS devices, following a tie-up between public sector oil marketing companies and the bank.
People are already allowed to pay for their fuel using old notes till the midnight of November 24.
The Finance Ministry allowed traders registered with agricultural produce markets to withdraw up to Rs. 50,000 a week from banks, while farmers were given 15 more days to pay crop insurance premium.
Process of demonetisation started in May
“The process of changing the currency notes had been long overdue. It had been pending since 2011. When the NDA government came to power, the discussions began.
But the entire process started moving in a decisive direction since May this year, when Prime Minister Narendra Modi gave the go-ahead.
There is rationing of cash as printing started only two months ago as the machines had to be attuned to the new plates and security features.
Magenta Rs. 2,000 notes contain the same “covert” security features as the old Rs. 500 and Rs. 1000 notes.
Changing the security features is a huge exercise and takes anywhere between five and six years. The last time such an exercise was done was in 2005 when currency notes of all denominations with new security features were introduced.
There are three types of security features in a note: overt, which can de detected by the naked eye; semi-covert, detected by a hand-held machine; and covert, visible only in big machines installed at banks.
The government has said that the introduction of new notes would check counterfeiting.
According to investigations done by the National Investigation Agency (NIA), much of the fake currency in circulation in India was printed in the government press of Pakistan.
It would take years to counterfeit the new notes. Any country changes its notes every 7-8 years with additional security features to check counterfeiting.
There was no major change in the Rs. 1,000 notes introduced in 2000, while changes in the Rs. 500 note, were done over a decade ago.