Government’s further steps to ease demonetisation struggles

a. 1.2 lakh

b. 1.3 lakh

c. 1.4 lakh

d. 1.5 lakh

 

GoI on 11th Nov 2016 eased cash-holding limits of banking correspondents and enhanced fund flow to post offices as part of steps to ease liquidity for millions hit by demonetisation of INR 500 and 1000 rupee notes

• Cash holding limits of banking correspondents has been raised to INR 50,000 per day
• Banks have also been given the flexibility to raise the limit further in appropriate cases
• Currently, there are 1.2 lakh correspondents in the country with a rural presence that is strong
• Till now, each of the correspondents had different cash holding limits depending on the rules that banks set
• These correspondents have also been given the right to withdraw funds from respective banks multiple times, rather than only once as previously permitted
• Banking correspondents are those individuals which are empowered by banks to carry out numerous activities such as collecting deposits, exchange of old notes, disbursal of small loans, loan recovery, interest collection, pension products among others
• Likewise, supply of cash to branch post offices will be enhanced with 1.3 lakh branch post offices in India empowered to exchange and collect the the deposits of old demonetised INR 500 and 1000 rupee notes
• Banking correspondents and post office networks have 2.5 lakh banking points, according to the government
• Micro ATMs will also be deployed throughout the nation to dispense cash against credit and debit cards
• Government departments have also been asked to use e-payment systems to ease cash demand
• Task force has been set up under RBI deputy governor to oversee the cash supply situation and the recalibration of arms
• The exemption of using INR 500 and 1000 notes in government hospitals, petrol stations and notified milk vendors has been extended till Nov 24 midnight.
• Many android apps have also come about to deal with the situation like 'How to submit 500, 1000Rs Note' providing details like how to exchange or deposit or submit old notes at petrol pumps, post offices and banks as well as details on the new notes
• Other apps, like 'Change Rs 500, 1000 Notes' give vital information on new notes or share documents like the request slip used in exchanging old notes and answer frequently asked questions.
• There is even a mobile game called Modi Rules with a tag line Let’s kill black money

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