Prime Minister Narendra Modi shocked the country on Nov. 8 by abolishing 500 and 1,000 rupee notes, which accounted for 86% of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India`s cash economy to a virtual standstill.
The government and the Reserve Bank of India (RBI) have since taken a slew of measures to ease the pain from its measures. They are detailed below in chronological order.
DEC 21
RBI rolls back measure on 5,000 rupees deposit limit, says deposits won`t face scrutiny
DEC 19
RBI to allow deposits of up to 5,000 rupees in old notes til Dec. 30 after scrutiny from banks
DEC 16
RBI caps merchant discount rates for some card payments from Jan. 1, 2017 to March 31, 2017
RBI waives fees for some Immediate Payment Services from Jan. 1, 2017 to March 31, 2017
Tourists can change FX up to 5,000 rupees per week till Dec 31, from pvs deadline of Dec 15
DEC. 13
RBI advices banks to preserve CCTV recordings at branches between Nov 8 to Dec 30
DEC. 8
Govt announces incentives on retail purchases of some products on cashless transactions
DEC 7
RBI withdraws temporary order for banks to place deposits under cash reserve ratio
DEC 2
Govt raises limit for market stabilisation bonds to 6 tln rupees to absorb extra liquidity
DEC 1
Govt says old 500 notes can no longer be used at petrol stations, airline ticket counters
NOV 30
RBI allows banks to use all cash to meet hiked cash reserve requirement ratio
RBI tightens monthly withdrawal rules from "Jan Dhan" accounts for poor
NOV 28
Govt announces tax amnesty scheme for unreported cash; will charge 50 pct in taxes, surcharges
People would also have to park quarter of total sum in non-interest bearing deposit for 4 yrs
RBI to allow withdrawals above 24,000 INR weekly limit of deposits made in legal tender.
Those withdrawals would be in new 2,000, 500 rupee bills
NOV 26
RBI says orders banks to place 100 pct of deposits between Sept-Nov under cash reserve ratio
NOV 25
RBI expands basket of securities that can be accepted for collateral under money market ops
RBI says old currency notes can be exchanged at RBI branches
RBI says tourists can exchange foreign currency worth up to INR 5,000 per week till Dec 15
NOV 24
Govt stops over the counter exchange of old banknotes; can only be deposited
Govt to ensure adequate cash supply for pensioners, armed forces personnel
Allow certain payments in old 500 rupees notes including at tolls, hospitals for limited time
NOV 23
India govt says will offer 210 bln rupees in farm credit to farmers
NOV 22
RBI sets balance kept in prepaid wallets, cards (PPIs) at 20,000 rupees from 10,000 til Dec 30
Merchants can transfer up to 50,000 rupees from PPIs to banks til Dec 30
Monthly limits on transactions via PPIs raised to 20,000 rupees for 10,000 til Dec 30
RBI asks state-run Nabard to disburse up to 230 bln rupees for crop loans
NOV 21
RBI allows cash withdrawal of up to 250,000 rupees for wedding-related expenses
RBI allows farmers to withdraw up to 25,000 rupees a week from their loan, deposit accounts
RBI gives small borrowers 60 more days before loans of up to 10 mln INR are marked substandard
Govt allows farmers to purchase seeds from state-run outlets with old 500 rupee notes
NOV 18
RBI sets limit of cash withdrawal at card swiping machines at 2,000 rupees per day
NOV 17
Govt allows farmers to withdraw up to 25,000 rupees a week against the crop loans
Govt extends time limit for farmer to pay crop insurance premiums by 14 days
Cuts limit for over-the-counter exchange of old bills at banks to 2,000 rupees from 4,500
NOV 15
Govt says banks must use indelible ink to ensure people change cash only once
NOV 14
India extends deadline for payments in old notes including for petrol for limited time
Govt says to instal new micro cash machines acrouss country
Govt asks banks to waive off transaction charges on debit, credit cards
Govt says to raise the cash withdrawal limit from current accounts to 50,000 rupees per week
NOV 13
RBI raises cap on weekly cash withdrawals from banks to 24,000 rupees from 20,000
Removes per-day withdrawal limit cap of 10,000 rupees
Raises limit for over-the-counter exchange of old bills at banks to 4,500 rupees from 4,000
Waives ATM fees for all transactions by savings bank customers til Dec. 30
Govt increases withdrawal limits at recalibrated ATMs to 2,500 rupees/day from 2,000 rupees
NOV 11
Extends deadline for payments in old notes including for petrol for limited time
NOV 8
India abolishes 500, 1,000 rupee notes in fight against `black money`
500, 1000 rupee notes must be tendered into banks, RBI by Dec. 30
Caps exchange of old bills over-the-counter at banks at 4,000 rupees
Caps cash withdrawals from bank accounts at 10,000 rupees per day till Nov 24
Caps cash withdrawals from bank accounts at 20,000 rupees per week till Nov 24
Caps cash withdrawals from ATMs at 2,000 rupees per day per card till Nov. 18
Caps cash withdrawals from ATMs at 4,000 rupees per day per card from Nov. 19
Allows certain payments in old notes including for petrol for limited time
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