NJD’s Qanon posts 2nd-largest market share of Rs 20,000 notes after scrapping cash-only withdrawal rules

NEW DELHI: The government on Friday scrapped the Rs 20 and Rs 500 notes for five days and said it will allow the people to deposit cash in ATMs and withdraw cash from ATMs across the country.

“We have taken steps to ensure that the economy is back to normal,” Finance Minister Arun Jaitley said in a statement.

He said the Reserve Bank of India would continue to monitor the situation and would provide updates on the situation when it was clear that the new system was working well.

The move came after Prime Minister Narendra Modi cancelled cash-based withdrawal of 10% of Rs 1,000 and 5% of 500 notes, and said that the government will start accepting cash withdrawals from all banks on January 16.

The withdrawal cap will be lifted on January 17.

Modi had announced in January that the RBI would begin allowing people to withdraw cash and banknotes from ATM machines from January 16, 2017.

“The withdrawal cap on January 15 will be reduced to 10% and the withdrawal limit will be Rs 1 lakh,” Jaitry said in the statement.

The government also scrapped the old Rs 1.50 and Rs 2,000 banknotes in circulation, but said that banks will continue to issue the old notes at Rs 1 and Rs 5 notes in circulation.

The RBI has also set up a national cashless ATM network for cash withdrawals in the national capital.

The system is being rolled out in the city, the state capital, Meghalaya and Assam.

Jaitory said the cashless ATMs will be opened in the cities and states of Uttar Pradesh, Bihar, Haryana, Haldia, Mehsana, Odisha, Punjab, Sikkim, Delhi, Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, Kerala-NCR and Assamese regions.

In Delhi, cash withdrawal will be possible from the ATMs from January 15 to March 5, and cash withdrawal from ATMP will be available from January 17 to March 15, the statement said.

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