The Reserve Bank of India (RBI), on Monday, published four circulars in which it announced various steps that the central bank as well as other banks will undertake to decrease public distress of cash crunch.
1) Waiver of Customer charges on ATM transactions:
Banks will waive the levy of ATM transaction charges by savings bank customers done at their own banks’ ATM as well as other banks’ ATMs, regardless of the number of transactions done during the month. The waiver is applicable from November 10 to December 30, 2016, the central bank announced in a circular.
2) Expanding the distribution locations for deposit and withdrawal of cash:
i) Current Account (accounts which are operational for three months or more) holders can withdraw up to Rs 50,000 in a week, predominantly in Rs 2,000 denomination only.
ii) Banks may station Micro ATMs near village Panchayat Offices, Police Stations/ Police and Military Outposts, Government departments, offices of Public Sector Units, Petrol Pumps and similar locations. Since such locations may pose larger cash requirements, RBI has directed banks to enhance the limit of micro ATMs to atleast Rs 50,000 and allow the frequent filling of cash in them.
iii) RBI has asked banks to use mobile vans to provide an exchange, deposit and withdrawal facility to people residing in remote or unbanked areas.
iv) The central bank has stated that banks should open accounts for Tea/coffee and other plantation workers, employees of sugar cooperatives, diary firms and other worker groups where the payment location is concentrated.
v) It recommended banks to hire retired employees in order to have a helping hand under the increased work load.
vi) RBI has asked banks to ensure that customers use separate pay-in-slips for depositing specified bank notes and other legal tender bank notes. Banks have to put in place within the Core Banking Solution, a mechanism to maintain a record of receipts of Sustainable Banking Networks, customer-wise and denomination wise whether for exchange or for deposit, in order to facilitate subsequent verification.
3) Withdrawal limit in District Central Cooperative Banks:
RBI has asked district central cooperative banks to permit customers to withdraw money up to Rs 24,000 per week until November 24, 2016. However these banks will not have any exchange and deposit facility of the defunct Rs 500 and Rs 1,000 notes. The limit of Rs 24,000 is not applicable to withdrawal of cash by a DCCB account with any other bank.
4) Formation of Task Force to re-calibrate ATMs and enable dispensation of Mahatma Gandhi (New) Series Bank notes:
RBI has set up a task force under the chairmanship of Deputy Governor, S. S. Mundra to re-calibrate all ATMs and cash handling machines. The task force will comprise of members from the Department of Economic Affairs, Financial Services, Ministry of Home Affairs, representatives from four banks with the largest ATM network, i.e., SBI, Axis Bank, ICICI Bank and HDFC Bank. It will also consist of representative from NPCI and the Chief General Manager from the department of Currency Management. While the aforementioned representatives will be members of the task force, the Chief General Manager, Department of Payment and Settlement System will be the Member Secretary.
