Press Statement of Finance Ministry regarding demonetisation

Finance Ministry reviews the position regarding availability and distribution of all denomination of bank notes in different parts and regions of the country; Issuance of the new series of Rs. 500/- notes commenced; Instructions issued to the Banks and Post Offices to ensure proper distribution of all denomination notes including small denominations up to the last mile including through mobile banking vans and Banking Correspondents (BCs).

The Union Finance Ministry today reviewed the position regarding availability and distribution of all denomination of bank notes. Some of the highlights of the review and the decisions taken are as follows:-

1. In the first four days ( from November 10th to 13th , upto 5 pm ) about Rs 3.0 lacs crores of old Rs.500/- and Rs.1000/- bank notes have been deposited in the banking system and about Rs.50,000 crores has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATM’s or by exchange at the counter. Within these four days, the banking system has handled about 18 crore transactions.

2. Coordination is being continuously done by Ministry of Finance with RBI, Banks and Post Offices to make all denomination notes available at all locations.

3. Instructions have been given to the Banks and Post Offices to ensure proper distribution of all denomination notes. Banks have also been especially advised to ensure the availability and distribution of small denomination notes.

4. Chief Secretaries of the States have been requested to identify the rural pockets, if any, where availability of cash has been a problem and provide all support to the Banks and Post Offices in order to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and Banking Correspondents (BCs).

5. It has been reported that certain business houses viz. Hospitals , Caterers , Tent houses etc. are not accepting Cheques/Demand Drafts and online payment transfer from customers. It is advised that in such cases customer can make a complaint to the concerned District Magistrates/District Administration for action against such establishments. 

No need to panic on cash deposit of old notes : I.T dept is not going to chase every deposit.

Housewives, farmers and those whose annual income is within the tax exemption limit may not be hounded by tax authorities for depositing up to Rs.2.5 lakh of the now-defunct higher denomination currency notes in bank accounts, a top government official said today.
Click here to view the replies from Revenue Secretary

After withdrawing Rs500 and Rs1,000 notes from circulation, the government allowed individuals to deposit the same in their bank accounts till 30 December and get smaller denomination ones or new Rs500 and Rs2,000 bank notes.

These deposits, however, will be scrutinised to catch tax evaders and black money holders. But those falling within the income tax exemption bracket Rs2.5 lakh need not worry regarding their cash deposits in banks except for suspicious cases, the official said.

Banks will remain open on weekend to exchange old notes

Banks will remain open on coming Saturday and Sunday to deal with the rush of people expected to queue up at branches to exchange now-invalid currency notes of Rs 500 and Rs 1,000.

For public convenience, banks will remain open on coming Saturday and Sunday, Economic Affairs Secretary Shaktikanta Das tweeted.
CLICK HERE FOR RBI NOTIFICATION

As per the normal schedule, the coming Saturday being the second would have been a holiday, but keeping in view the expected rush at the branches, it was decided otherwise.

There are about 149 scheduled commercial banks, including 56 regional rural banks, with branch network of about 1.30 lakh across the country. Besides, the co-operative banks have also been asked to take deposit and exchange the old with the new one.

It is, however, not clear whether post offices would be open or not on the weekend. There are about 1.25 lakh post offices across the country.

Rs 500 and 1000 denomination note is no longer valid.

Prime Minister right now announced that Rs 500 and Rs 1000 currency note is no longer valid from today midnight.
These currency notes may be changed from Bank and Post Office upto 30th December.
Click here for FAQs and answers
All Banks to remain closed for public dealings tomorrow for preparation for this change.
If not possible to change it by December2016, it may be change by 31st march 2017 by submitting ID proof.
Rs 2000 denomination note may be introduced.
Click here for details in RBI Website

Central D.A. from 01.07.16 : Order issued

“…the President is pleased to decide that Dearness Allowance (DA) payable to all categories of central government employees shall be admissible at the rate of 2 percent of basic pay per month w.e.f. 01.07.2016,” a finance ministry’s office order said.

According to the today’s Office Memorandum No.1/2/2016-E-II (B), the term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like special pay, etc.

Click here to download the order