There’s Enough Cash with RBI, Says Govt; Exempts Court Fee, Co-op Store Purchases, Toll Plazas

Following hue and cry over the shortage of new currency in banks and ATMs, the government said on Friday that the payment of old and demonetised notes will be allowed now even in court fee, consumer cooperative stores with ID proof, utility bill payment, and toll plazas.rbi

While cancelling the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations with effect from 8th November, 2016, exemptions were allowed for certain transactions for the first 72 hours with a view to minimizing inconvenience to the public.

After the shock has sent out panic calls, certain more transactions were included for exemption like Metro trains in cities and hospitals. In a statement, the government said it is “closely monitoring the situation.”

On Friday, it has now been decided that the existing exemptions should be extended until the expiry of 14th November, 2016, to the existing facilities with riders as below:

(i) Payment for court fees will be included in the exemptions.
(ii) The ID proof of customers will be required for transactions in consumer cooperative stores.
(iii) Payments towards utility bills will be restricted to only individuals / households for arrears and / or current bills. No advance payments will be allowed.
(iv) Payments in toll-plazas of the State and National Highways will be deleted from exemptions, considering that the Ministry of Road Transport and Highways is separately issuing instructions in this regard.

There is enough cash with RBI, said the statement though several banks repeatedly claimed that there is no supply of cash to the banks by RBI. It assured that the “supply of cash to Bank branches and ATMs are being stepped up gradually.”

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