Demonetisation: No exchange, only deposit

From now on, payment of fees in old 500 notes up to Rs 2,000 per student has been allowed in schools and colleges run by central and states governments, municipalities and local bodies. Payment towards pre-paid mobile top-up to a limit of Rs 500 per recharge has also been allowed while purchase from consumer cooperative stores will be limited to Rs 5,000 at a time, an official release said. Current and arrears dues payments with scrapped Rs 500 notes will be limited to only water and electricity, a facility that will continue to be available only for individuals and households. “Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas upto December 2, it has been decided that toll payment at these toll plazas may be made through old Rs 500 notes from December 3 to December 15,” it said. Foreign citizens will now be permitted to exchange foreign currency up to Rs 5,000 per week. 

Necessary entry to this effect will be made in their passports, it said. Explaining the reason for discontinuance of exchange of the defunct notes, the release said it has been observed that over-the-counter exchange of the old notes has shown a declining trend. It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts, it said. The release said the government has been reviewing the issues arising out of the cancellation of the legal tender character of the high denomination notes. The government has also been receiving various suggestions in this regard. After due consideration of all relevant aspects, decisions relating to certain operational aspects of the scheme have now been taken, it said.

Lack of infrastructure, shortage of currency notes and non-operational District Cooperative Central Banks (DCCB) have created chaos in the banks post demonetisation, said members of the Bank Employees Federation of India (BEFI).

Painting a similar picture in all 9,000 branches of 52 banks in Tamil Nadu, they said the grim situation would continue for the next few months. The lack of currency notes is a problem faced by most of the banks across the state. C P Krishnan, State General Secretary, BEFI, said the government should provide banks enough notes of lower denomination. “The banks have not been provided the required infrastructure to deal with the unprecedented crowd, which is 10 to 15 times higher. And the cashiers are held accountable if the numbers don’t tally. From November 9 to 19, bank officials worked without a holiday,” he said. BEFI has also announced a protest at 5.30 pm on Friday at all banks across the country.

Stepping up the opposition tirade against demonetisation, former Prime Minister Manmohan Singh on Thursday castigated the government and the Prime Minister over the move, saying its implementation was a “monumental management failure” and a case of “organised loot and legalised plunder.”

Singh, who spoke in the presence of Prime Minister Narendra Modi in Rajya Sabha, said the decision would result in decline of GDP by two per cent, it being an “under-estimate”. He hoped the Prime Minister will find a practical and pragmatic decision to mitigate the sufferings of the common man and the poor who have been in distress after the decision.   Asking Modi to spell out the names of countries where people are not allowed to withdraw their money from banks, he said, “This alone I think is enough to condemn what has been done in the name of  greater growth.”