Business

Loophole allows multiple transactions for money exchange of cap of Rs 4000

November 13, 2016 06:21 AM
Rush at banks for cash exchange and withdrawals from accounts

Chandigarh: The government announced a Rs 4,000-cap on exchanging demonetised 500 and 1000 rupee notes for valid money till November 24 , but citizens are managing to make multiple such transactions.

Since Prime Minister Narendra Modi announced the scrapping of Rs 1000 and Rs 500 notes on November 8, people have been making panic runs to banks and ATMs. In some cases, people have used multiple ID proofs at the same branch or post office to exchange their money.

With no specific directions on whether the cap was meant as a daily limit, people have been visiting multiple bank branches to exchange their devalued money.

Since Prime Minister Narendra Modi announced the scrapping of Rs 1000 and Rs 500 notes on November 8, people have been making panic runs to banks and ATMs. In some cases, people have used multiple ID proofs at the same branch or post office to exchange their money.

“Today we saw the same person visit us again with a separate ID proof and since we recognized him, we refused to give him further exchange. But it is very difficult to find out otherwise. The idea is that the most urgent needs are met first. Also, for more cash needs, a person can withdraw up to Rs 10,000 per day or use ATMs,” a Canara Bank branch official said.

The Rs 4000-limit is expected to be reviewed on November 23.

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