All Bank Accounts to be Digitized by the end of March
The government has given directives to all the banks to activate net banking all over by the end of the march and make
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Compulsory to connect it with Aadhaar number which will give assistance to consumers to make online Transactions and make payment digitization at a faster mode. This gauge has been well acknowledged at the uppermost level by the government, and is well targeted to easily assist payment digitization all over the banking sector.
“This determines that it will additionally be able to activate payment digitization process in a much swifter way; and help in developing advanced ways to build up in our nation and help fresh lot of customers to learn this process of net transaction”, IT minister Ravi Shankar Prasad echoed this news to all. The department has taken methodical ways to digitize this transaction process in a speedy way which became a focal point for various initiations in this track that also comprises of in giving complete surety to secure this digitization and put on course cyber security measures.
When Prasad held an appraisal meeting on the propagation and speedy expansion of payment digitization, and many issues linked with it that became a headache. “These were absorbed deeply which took an all round view to momentarily regulate structure and totally associated to digital methodical process.
“Banks have been specially made a request to get Aadhaar on track by the end of March. This would explain that the Bank account is connected with Aadhaar which will help to activate digitization process in a much easy way.” as said by Prasad. With senior most officials in IT sector explained that about 35% account holders which became terminated and to those who did not have any connectivity with their Aadhaar card simultaneously which had bank accounts.
This might be an obstruction to support it with payment digitization and net transactions. “If net banking is disallowed, then some of its running applications might not be able to formulate digitalized transaction in a smooth way”, as said by a spokesperson.
No restrictions on Current account cash withdrawal from 1st Feb 2017
RBI Decided to Raise the Withdraw Limit from ATM, Rs 10,000 per day from Current Rs 4,500
- From Feb 1st, there will be no withdrawal limit for current accounts, as declared by RBI. Early Monday, Reserve bank has inverted its decision for implementing restriction on cash limits for withdrawal from ATMs and Bank Accounts and also updated of no changes in savings account. After the announcement of demonetization on 8th Nov 2016, RBI has imposed limits on cash withdrawal in current account and savings account.
- By digital operations attaining grip, administration consider for establishing an individual controller for facilitating electronic payment method in the nation as well as control transaction alleges.
- Authorized sources assumed that RBI, as a banking controller, frames strategies to profit banks and not implementing opposition and modernization aims of company performing in the payment business.
- Before the Watal board, The Reserve Bank has declared that control over payments must be in the bank due to controlling of money outflow and inflow is a collective method of central bank and comprise, upholding the assurance in money as a way of trade.
- Considering over the requirement for an individual controller, the origin has declared that electronic payment will not require trade of real currency and will also not comprise servicing of deposits/loans, credit offtake or deposit taking.
- Emergence of fresh payment controller has appeared due to the contemplation of the agency, or creating the present group regarding controlling and management of payment and resolution system in RBI much sovereignty.
- Hence, the physical money is persisting to reach at the major approach of payment, as this method is considered as â€˜costlessâ€™ on evaluating it with the observable costs related with electronic payments.
- Cash exchange seem to be stabilize at the conclusion of February and about 70 per cent of the physical cash notes must be remonetized till then as it is declared.
- The fresh cash outflows and inflows at the time of 13 th January, as it is declared by the updated RBI information regarding circulation of currency, should be around Rs. 7 trillion, which states that approximately large number of pieces of notes counting 70 million of varied values, which are printed each day.
- It is stated that in the cash printing press, each day it translates into roughly 1.8 billion notes per month. The RBI has stated that at the time of 19 th December, 2016, pieces of money approximately Rs. 5.9 trillion is remonetized.
- Therefore, while the time of prevailing from 19 th December to 13 th January, just about valued notes of 1 trillion are printed. As it can be clearly observed that fresh money pieces printing is continuing at the great rapidity over concerning about the less-cash hope as well as not the earlier period, and we greet this unique normal.
- The upcoming time possessed by the money as a way of exchange and not the accumulation of values, as declared.
- With the recent news update from RBI ( Reserved Bank of India ) there is a change in withdraw limit of money from ATM to Rs 10,000 per account holder card and Current account holder has a limit of Rs 1Lakh per week to withdraw the amount. This change implies that the post demonetization cash crunch is easing as supplies of currencies raised over from the past few weeks.
While the overall cap of Rs 24,000 per week for savings accounts stays in place, however it is considered as soon be raised to as much as Rs 40,000, according to bankers with knowledge of the matter. The Central Banks took participation in discussion with bank regarding the raising saving account withdrawals limits regarding the supply of new Rs 500 notes has enhanced in the past few weeks. At the present date the current limit on card withdrawal from ATM per day is Rs 4,500. The weekly cap on current account withdrawal is Rs 50,000.
There is an assumption by a banker that weekly limited can be raised to Rs 36,000 or even Rs 40,000 a week on saving account believing that this relaxation cut down the residue issue of carrying the cash.
RBI announces to increases ATMs withdrawal limit from Rs.2500 to Rs 4500 per day from 1 January.
1. The Ordinance has been saying that holding, transferring or receiving of junked notes is illegal and punishable with imposition of penalty, says the Finance Ministry.
2. The government also said non-resident Indians (NRIs) can exchange or deposit the junked high-denomination notes at specified RBI offices till June 30.
Living in a hassle? Choose 8 Benefits of digital payments
Prime Minister's demonetization scheme was announced with a clear intention, just to tackle black money. Although, it received criticism from many people who had to face inconveniences like cash shortage and some more. To overcome such problems people move on the way to digital transactions.
1. Petrol or Diesel
Oil marketing companies will now proffer a discount of 0.75% on petrol or diesel purchase prices, when payment is made via card, E-wallet or any other digital mechanism. That means if you are spending Rs. 1000 on diesel purchases, can save around 0.14 litres extra.
2. Point of Sale (PoS)
Central Government has taken initiations through NABARD for enlarging financial support to banks for employment of 2 PoS devices in almost 1 lakh villages. This required so that about 75 crore villagers can also access cashless transactions to cater agricultural needs.
3. No service tax for transactions done up to Rs 2,000
When digitally buying grocery or paying restaurant bills through digital transactions, ensure that your total bill will not exceed the limit of Rs 2000, above this limit an appropriate service tax will be charged between 6% and 15%.
From January 1, 2017, suburban railway travellers who pay digitally on monthly or seasonal tickets will get a discount of 0.5%. Also, 5% discount will be accessible to the passengers availing paid services like catering, accommodation, retiring rooms and others.
Public sector insurance companies offer incentives to their policy holders, if the premium is paid through digital means. They will provide a discount of up to 10% on premium paid for general insurance policies. LIC offers 8% discount for new life insurance policies.
6. Merchant Discount Rate (MDR)/Transaction Fee
The Central Government Departments and Central Public Sector Undertakings (PSUs) will now bear the transaction fee/MDR charges on payments made by customers through digital means. To persuade small merchants to embrace digital system, banks are advised to charge less than Rs 100 per month for using PoS terminals/Micro ATMs/Mobile PoS.
There is a discount for you to zip away in your car too. Users will get 10% discount while paying the toll using Radio Frequency Identification Card/ Fast Tags at Toll Plazas on National Highways till March 2017.
8. Rupay Kisan Cards
It has asked rural regional and co-operative banks to extend 4.32 crore Kisan credit card holders the facility to transact digitally. This would be through POS machines/Micro ATMs/ATMS that will honour "Rupay Kisan Cards".
New notifications on Rs.500 & Rs.1000 denomination:
Number of recalibrated ATMs will be enhanced within next few days, task force set-up under deputy governor of RBI. You can now get new Rs 2,000 notes at ATMs. 1.2 lakh banking correspondents are providing help for rural India. All govt departments and central public sector activities will maximize their e-transactions as decided.
- One can withdraw from Rs 20,000 to Rs 24,000 from bank account as per weekly basis and maximum Rs 10,000 per day.
- You can also withdraw the entire amount in one go through cheque transaction.
- The increased limit for over-the-counter cash exchange at banks is Rs 4,000 to Rs 4,500.
- ATMs are being recalibrated to allot the new series of Rs 500 & Rs 2,000 notes or in other words can dispense Rs 2,500 at a time.
- Current account business entities having functioning accounts since last 3 months can draw Rs 50,000 at a time.
To accelerate the process, a task force is being set up under the chairmanship of RBI Deputy Governor with other bank representatives. During this, micro ATMs will be organizing largely to distribute cash against debit and credit cards.
It said that from November 10, till 5 p.m. on November 13, a large amount about Rs 3 lakh crore of old Rs 500 and Rs 1,000 bank notes had been deposited in the banking system. Within these four days, the banking system has handled about 18 crore transactions. Approx Rs 50,000 crore had been already distributed to people through bank account withdrawals or from ATMs or by exchange of old notes.
- The extended date is January 15, 2017 considering Annual life certificate which pensioners are required to submit during November.
- There will be separate queues for senior citizens and divyang people in banks. A separate queue is provided to exchange old notes with new ones.
- For better convenience, banks are advised to arrange mobile banking vans to help major hospitals for urgent banking transactions. New Rs 500 notes have already hit the market on Sunday.
- Lakhs of people have virtually crowded the banks and ATMs all over the country since Thursday when Modi's dramatic 8 November night announcement to spike Rs 500 and Rs 1,000 currency notes.
- Government is also requested to facilitate opening of new bank accounts as part of financial inclusion programme. The ministry recently advised the individuals to make complaints with the District administrations whenever hospitals, caterers and tent houses refused to accept cheques, demand drafts and online payment transfer.
- The statement said that diverse state governments have made sophisticated arrangements to help the banks and post offices discharge their duties and dispense currencies.
The Assam government has arranged mobile banking vans with the support of banks and state government staff at certain hospitals for carrying out emergency transactions, it said. The statement said that in the remote north-eastern Arunachal Pradesh, special arrangements like cash deposits or withdrawal and opening of new bank accounts have been made with the help of banks and state government staff.