India released new measures to tackle with shortage of cash

India’s government released today new measures to tackle with shortage of cash, due to the decision for withdrawal of 500 and 1000 rupee banknotes. Last week the government dismissed usage of these banknotes in effort to tackle corruption, counterfeiting and tax evasion. ATMs are shut down because they must be adapted to the new banknotes and banks are besieged by desperate clients, some of whom are lining up seven hours to exchange their money.

Between Thursday and Sunday the local banks collected 3 trillion rupees from the withdrew 500 and 1000 rupees and managed to distribute only 500 billion rupee on the market. This caused significant shortage of cash among the citizens.

The representative of the Treasury Shaktikanta Das said that mobile banking vans and bank employees, offering financial services outside bank branches, will distribute banknotes with smaller value, besides new micro ATMs will be used in the country.

“Banks are asked to organize separate queues for elder citizens and people with disabilities”, added Treasury Secretary, Shaktikanta Das.

Yesterday it was announced that old banknotes can be used at petrol stations, hospitals and pay bills until November 24.

Among the new measures of India’s government to tackle with shortage of cash, the daily limits for exchange at banks and ATMs were increased.

“The upgraded ATMs will start giving new notes of 500 and 2,000 rupees after two days”, added Das.

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