On the 22nd Day of Demonetization, the Reserve Bank of India has taken a number of measures to ameliorate the economy badly hit by cash crunch.
From printing of the new Rs. 500 currency notes to asking banks to beef up preparations to cater to salaried customers to putting fresh withdrawal restrictions on Jan Dhan accounts, the RBI is scampering for remedial measures to fix a badly-hit economy.
RBI pressed into service to ease Rs500 note shortage
Starting today, the RBI will print the new Rs.500 currency notes to restore normalcy in the economy reeling from shortage currency notes of lower denominations.
As per an estimate, the Indian economy needs daily infusion of staggering 13,000 crore currency notes of Rs. 500 denomination.
However, the maximum number of Rs. 500 notes the Reserve Bank of India can print daily is only 2700 crore, even if it operates at an optimum level.
The RBI printing presses are targeting to print roughly 1 billion new currency notes of Rs. 500 denomination by December-end.
Banks brace for salary payments amid cash crunch
The bank branches across India have been instructed to beef up their preparations to cater to a massive demand from their customers as salaried people will throng their respective bank branches to draw their monthly salaries.
As per the post-demonetization RBI norms, the salaried people can withdraw up to Rs. 24,000 during a week. The bank branches across India are expecting a deluge in the demand for cash amid the burgeoning cash crunch.
The branches have been told to encourage their customers for using electronic payment options and use cash very judiciously.
Withdrawal limits imposed on Jan Dhan accounts
The RBI has imposed fresh restrictions on Jan Dhan accounts in order to prevent misutilization of the accounts for illegal transactions such as benami properties and money laundering.
The central bank of India has set a monthly withdrawal limit of Rs. 10,000 from Jan Dhan accounts, suggesting the restriction will prevent the accounts from being used for money laundering.