New Delhi: As banks open on Monday after the weekend, long queues are expected at bank branches and at ATMs. On Saturday, most of the banks had restricted their exchange of old notes to senior citizens and on Sunday banks were closed. Many ATMs were also running dry on Sunday, so people are expected to flock to banks on the beginning of the week.
The government denied on Sunday rumours that it has withdrawn concession for weddings and to farmers. During the day, Delhi Chief Minister Arvind Kejriwal had retweeted a tweet alleging that the government had silently withdrawn higher cash limit for marriages and farmers. “No withdrawal of any concession for farmers or for weddings. Aspects of notification 3408 now included in 3407 as a technical correction,” tweeted economic affairs secretary Shaktikanta Das.
Last week, the government had said that in case of a marriage in the family, they can withdraw Rs 2.50 lakh in cash from their bank accounts. This limit will apply separately to the girl’s family and the boy’s family.
To help farmers in the rabi season, the government had permitted them to draw upto Rs 25,000 per week in cash from their accounts.
This facility will also apply to the Kisan Credit Cards (KCC). Farmer who received money through cheque/RTGS from registered mandis were also be permitted to withdraw up to Rs 25,000 per week in cash.
Meanwhile, a number of states, including West Bengal, Uttar Pradesh and Tamil Nadu on Sunday raised the issue of demonetisation of 500 and 1000 rupee notes and its impact on state treasuries with
Union Finance Minister Arun Jaitley. Before the start of informal meeting on GST, West Bengal Finance Minister Amit Mitra said the ban on old currency notes would trigger recession as industrial activity would be hurt and tax collection would recede, said sources. Tamil Nadu too joined the chorus saying that industrial activity is hurt and while Uttar Pradesh said factories in Kanpur and Moradabad have closed operations. Kerala Finance Minister Thomas Isaac said many states have “reported informally” that they have seen a “significant decline in revenues”.
“If 86 per cent of your money disappears, there is a problem for the people. There is a collateral impact on investments sentiments,” Mr Isaac said. As per sources all states were in agreement that their revenues will get impacted and employment will be hit, but nobody demanded a roll back.
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