Current Affairs for IAS Exams – 25 November 2016
:: National ::
Exchange of high value notes over the counter at banks has been stopped
- In further modifications to use and exchange of the demonetised Rs. 500 and Rs. 1,000 notes, the Centre extended the exemptions for the use of Rs. 500 notes till December 15.
- These can still be used to pay fees at government schools and colleges as well as for the purchase of pre-paid mobile top-ups.
- The exchange of the high-value notes of Rs. 500 and Rs. 1,000 over the counter at banks and post-offices has, however, been stopped with immediate effect.
- This effectively means that those hold-ing Rs 1,000 notes can only deposit them into bank accounts.
- Regarding the exchange facility for old notes, which was initially allowed up to Rs.4,000 per person, then enhanced to Rs.4,500 before be-ing restricted to Rs.2,000.
- RBI issued an advisory to banks to ensure adequate cash to meet the likely demand of government officials and pensioners and similarly, provide adequate supply at the military out-posts for the cash requirements of armed forces personnel.
- Purchases from consumer co-operative stores with old currency notes have now been limited to Rs 5000 at a time, while foreign citizens can now exchange foreign currency up to Rs 5000 per week.
- The RBI has informed banks that they must facilitate the opening of new accounts for unbanked people, and en-courage those who approach them for exchanging the old currency notes to deposit them into bank accounts.