The chief of India&#39;s central bank, Urjit Patel, received support from the most unlikely quarter while he was being grilled by an opposition party leader Digvijay Singh during a meeting with the parliamentary committee about demonetisation on Wednesday.

When asked by Digvijay Singh, a member of the Congress party, as to whether there would be chaos when the withdrawal limit is removed, former prime minister Manmohan Singh, who is also a Congress member, told Patel that he need not answer that question.

The government yesterday (January&nbsp;17) raised the withdrawal limit from Rs 4,500 per day to Rs 10,000 per day, although the weekly limit remains Rs 24,000.

It was an unexpected show of support because Singh is not only a member of the same party as Digivijay Singh is, the renowned economist has in the past flayed the government&#39;s decision to scrap old banknotes as he believes the move will pare down India&#39;s economy by two percentage points.

During the Wednesday meeting, Patel, who is the governor of Reserve Bank of India, was chastised for not satisfactorily replying to questions regarding demonetisation, nearly three weeks after the deadline for people to exchange their old currency notes with new ones elapsed.

Saugata Roy, a member of the panel and a lawmaker affiliated to Trinamool Congress, said Patel was &quot;unable to tell us how much money (old currency) has come back to the banks&quot;.

One of the members of the standing committee of finance, wishing anonymity, confirmed to WION that when asked as to when the details would be available, the RBI officials replied that they were calculating at the moment and could not give a timeline to the committee.

The federal government had given the public time till December 30 to replace their old currency notes with new ones.

As of December 14, various media reports stated that the banks in India had received 80 per cent of the old bank notes amounting to Rs 12.44 lakh crores (roughly $184 billion).

But Patel did inform the quantum of amount infused into the economy. He said Rs 9.2 lakh crore (approximately $135 billion) worth of new currency notes has been injected back into the economy so far.

The Standing Committee of Finance, headed by Veerapa Moily, grilled the finance ministry officials and Patel for nearly two hours. Overall, the meeting lasted for four&nbsp;hours but Patel joined the briefing session in the second half.

When one of the members questioned Patel on the emphasis been given by the prime minister and finance minister on turning India into a cash-less economy, Patel replied: &quot;The demand will be met with supply and it is the prerogative of the Reserve Bank of India.&rdquo;

Government officials also informed the committee that demonetisation was a well thought-out decision and preparations were on since January 2016.

India&#39;s central bank had earlier given a seven-page reply that it received advisory instructions from the government to consider the government&#39;s plan to replace the hitherto currency notes.&nbsp;But several questions were raised when it came to light that the RBI had received the advisory on November 7, barely 24 hours before the government rolled out the nationwide scheme.

India&#39;s central bank came under a deluge of criticism as many felt that the institution&#39;s autonomy had been undermined. The theme of RBI&#39;s autonomy dominated the Wednesday meeting as well, with Patel fielding a raft of questions about the issue, another member of the panel told WION.&nbsp;

Meanwhile, WION has learnt that Patel will be summoned again either during the Budget Session (February 1) or just after it as a&nbsp;lot of questions remained pending due to paucity of time.&nbsp;

But problems&nbsp;don&#39;t end for Patel there as he is expected to depose before the Public Accounts Committee on January 20, where opposition parties are expected to ask him uncomfortable questions about how the decision on demonetisation was reached upon. The very debate on demonetisation and the RBI&#39;s autonomy has become extremely political as regional elections in five states of India are merely 20 days away.&nbsp;

(WION with inputs from ANI)

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The former premier told Urjit Patel that he need not answer the question when asked if there would be chaos once withdrawal limit is lifted

The chief of India's central bank, Urjit Patel, received support from the most unlikely quarter while he was being grilled by an opposition party leader Digvijay Singh during a meeting with the parliamentary committee about demonetisation on Wednesday. When asked by Digvijay Singh, a member of the Congress party, as to whether there would be chaos when the withdrawal limit is removed, former prime minister Manmohan Singh, who is also a Congress member, told Patel that he need not answer that question. The government yesterday (January 17) raised the withdrawal limit from Rs 4,500 per day to Rs 10,000 per day, although the weekly limit remains Rs 24,000. It was an unexpected show of support because Singh is not only a member of the same party as Digivijay Singh is, the renowned economist has in the past flayed the government's decision to scrap old banknotes as he believes the move will pare down India's economy by two percentage points. During the Wednesday meeting, Patel, who is the governor of Reserve Bank of India, was chastised for not satisfactorily replying to questions regarding demonetisation, nearly three weeks after the deadline for people to exchange their old currency notes with new ones elapsed. Saugata Roy, a member of the panel and a lawmaker affiliated to Trinamool Congress, said Patel was "unable to tell us how much money (old currency) has come back to the banks". One of the members of the standing committee of finance, wishing anonymity, confirmed to WION that when asked as to when the details would be available, the RBI officials replied that they were calculating at the moment and could not give a timeline to the committee. The federal government had given the public time till December 30 to replace their old currency notes with new ones. As of December 14, various media reports stated that the banks in India had received 80 per cent of the old bank notes amounting to Rs 12.44 lakh crores (roughly $184 billion). But Patel did inform the quantum of amount infused into the economy. He said Rs 9.2 lakh crore (approximately $135 billion) worth of new currency notes has been injected back into the economy so far. The Standing Committee of Finance, headed by Veerapa Moily, grilled the finance ministry officials and Patel for nearly two hours. Overall, the meeting lasted for four hours but Patel joined the briefing session in the second half. When one of the members questioned Patel on the emphasis been given by the prime minister and finance minister on turning India into a cash-less economy, Patel replied: "The demand will be met with supply and it is the prerogative of the Reserve Bank of India.” Government officials also informed the committee that demonetisation was a well thought-out decision and preparations were on since January 2016. India's central bank had earlier given a seven-page reply that it received advisory instructions from the government to consider the government's plan to replace the hitherto currency notes. But several questions were raised when it came to light that the RBI had received the advisory on November 7, barely 24 hours before the government rolled out the nationwide scheme. India's central bank came under a deluge of criticism as many felt that the institution's autonomy had been undermined. The theme of RBI's autonomy dominated the Wednesday meeting as well, with Patel fielding a raft of questions about the issue, another member of the panel told WION. Meanwhile, WION has learnt that Patel will be summoned again either during the Budget Session (February 1) or just after it as a lot of questions remained pending due to paucity of time. But problems don't end for Patel there as he is expected to depose before the Public Accounts Committee on January 20, where opposition parties are expected to ask him uncomfortable questions about how the decision on demonetisation was reached upon. The very debate on demonetisation and the RBI's autonomy has become extremely political as regional elections in five states of India are merely 20 days away. (WION with inputs from ANI)

Demonetisation: Ex-PM Manmohan Singh comes to central bank chief's help

India will stop over-the-counter exchange of old currency&nbsp;notes&nbsp;after midnight on November 24, the country&#39;s finance ministry said on Twitter.

Earlier this month the government withdrew large denomination&nbsp;notes&nbsp;in an attempt to uncover billions of dollars in undeclared wealth.&nbsp;

Those with old&nbsp;notes&nbsp;will still be allowed to deposit them into their bank accounts until December&nbsp;31, but not permitted to do outright exchanges.&nbsp;

Foreign citizens will be permitted to exchange foreign currency up to 5,000 rupees ($73) a week, the ministry said.

The government had permitted various exemptions for certain transactions where payment could be made through old 500 rupees and 1,000 rupees&nbsp;notes. These exemptions, with some additions and modifications, will continue until December&nbsp;15.

(Reuters)

People will be allowed to deposit them in bank accounts till December 31

India will stop over-the-counter exchange of old currency notes after midnight on November 24, the country's finance ministry said on Twitter. Earlier this month the government withdrew large denomination notes in an attempt to uncover billions of dollars in undeclared wealth. Those with old notes will still be allowed to deposit them into their bank accounts until December 31, but not permitted to do outright exchanges. Foreign citizens will be permitted to exchange foreign currency up to 5,000 rupees ($73) a week, the ministry said. The government had permitted various exemptions for certain transactions where payment could be made through old 500 rupees and 1,000 rupees notes. These exemptions, with some additions and modifications, will continue until December 15. (Reuters)

Demonetisation: Over-the-counter exchange of old currency notes ends

The government on Thursday extended the exemptions on use of old Rs 500 notes in public utilities, but stopped the over-the-counter exchange of defunct currencies and use of Rs 1,000 notes. The government has extended the facility till December 15. &nbsp;

The government release said the payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes.&nbsp;

Schools and colleges run by central and state governments, municipalities and local bodies will accept fees up to Rs 2,000 per student.&nbsp;

Payment towards pre-paid mobile top-up to a limit of Rs 500 per recharge has also been allowed while purchase from consumer cooperative stores will be limited to Rs 5,000 at a time.

Current and arrears dues payments will be limited to only water and electricity, a facility that will continue to be available only for individuals and households.

Foreign citizens will now be permitted to exchange foreign currency up to Rs 5000 per week. Necessary entry to this effect will be made in their passports, it said.

Explaining the reason for discontinuance of exchange of the defunct notes, the release said it has been observed that over-the-counter exchange of the old notes has shown a declining trend.

It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts, it said.

(WION with inputs from PTI) 
&nbsp;

The government permitted various exemptions for certain transactions where payment could be made through old 500 rupees notes

The government on Thursday extended the exemptions on use of old Rs 500 notes in public utilities, but stopped the over-the-counter exchange of defunct currencies and use of Rs 1,000 notes. The government has extended the facility till December 15. The government release said the payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes. Schools and colleges run by central and state governments, municipalities and local bodies will accept fees up to Rs 2,000 per student. Payment towards pre-paid mobile top-up to a limit of Rs 500 per recharge has also been allowed while purchase from consumer cooperative stores will be limited to Rs 5,000 at a time. Current and arrears dues payments will be limited to only water and electricity, a facility that will continue to be available only for individuals and households. Foreign citizens will now be permitted to exchange foreign currency up to Rs 5000 per week. Necessary entry to this effect will be made in their passports, it said. Explaining the reason for discontinuance of exchange of the defunct notes, the release said it has been observed that over-the-counter exchange of the old notes has shown a declining trend. It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts, it said. (WION with inputs from PTI)

Demonetisation: Government extends exemptions on use of old Rs 500 note till December 15

With banks struggling to cope with rush to get alternative currency, the government has extended use of old defunct Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees and purchases from co-operative stores till November 24.

While withdrawing Rs 500 and Rs 1,000 notes from the night of November 8-9, the government had allowed use of the old currency at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds and petrol pumps for 72 hours.

This list was later expanded to include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills and ASI monument entry tickets.

As banks struggled to give alternate currency, the deadline was extended by another 72 hours. That deadline was to end at midnight tonight, but has now been extended till November 24, official sources said.

Old currency can also be used for purchases at consumer co-operative stores like Kendriya Bhandar with valid ID proof as also for paying court fee.

But payments towards utility bills will be restricted to only individuals or households for arrears and/or current bills. No advance payments will be allowed. 
 
(PTI)

The deadline was to end on November 14 but has now been extended by the Indian government

With banks struggling to cope with rush to get alternative currency, the government has extended use of old defunct Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees and purchases from co-operative stores till November 24. While withdrawing Rs 500 and Rs 1,000 notes from the night of November 8-9, the government had allowed use of the old currency at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds and petrol pumps for 72 hours. This list was later expanded to include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills and ASI monument entry tickets. As banks struggled to give alternate currency, the deadline was extended by another 72 hours. That deadline was to end at midnight tonight, but has now been extended till November 24, official sources said. Old currency can also be used for purchases at consumer co-operative stores like Kendriya Bhandar with valid ID proof as also for paying court fee. But payments towards utility bills will be restricted to only individuals or households for arrears and/or current bills. No advance payments will be allowed. (PTI)

Demonetisation: Deadline for old currency notes for utility payments extended till November 24