Government launches series of fresh steps; old notes can be used for selected transactions up to Nov. 24

After a chaotic period of monetary shock, the government has come out with a group of measures to arrest the difficult cash stringent situation in the country. To smoothen transactions, government has announced that old notes can be received in selected spots like petrol pumps etc up to 24th of this month.

The decision was taken late Sunday night at the meeting of senior government officials.

Now, people can use the denominated notes of Rs 500 and Rs 1000 at petrol pumps, government hospitals, government-run cooperative shops, air-ticket counters, milk booths, , burial grounds, international airports, to buy tickets at railway stations and for metro trains, to pay for medicines in government and private medical shops, to get cooking gas cylinders, and to pay court fees till 24 November. Already foreign tourists can use both of these notes.

Task force created to speed up recalibration

In another decision, the RBI has appointed a task force speed up recalibration of ATMs. Recalibration will enable ATM machines to deal with new notes. The task force to be set up under the Reserve Bank of India (RBI) deputy governor comprising officials of banks, RBI and the finance ministry, is aimed at hastening the process of recalibration of ATMs.

Finance Minister earlier indicated that the recalibration process will take two –three weeks.

Government also launched fund injection measures into small businesses. For this, small units are allowed to withdraw Rs 50000 at a time from their current account that is operational for at least three months.

Similarly, all government departments are asked to maximize electronic transactions. Banks and National Payments Corporation of India have also been asked not to impose transaction fees for electronic transfers until a notice.