Modi govt will not extend 30 December deadline for old note deposits


Government on Tuesday said sufficient cash is available with RBI and banks, and it is not considering extending the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes.

The statement was made in the Rajya Sabha even as people queued up at banks to deposit old high value notes and withdraw new cash.


“There is sufficient cash available with the Reserve Bank of India and banks. Circulation of notes in respect of Rs 100 has already been increased,” Minister of State for Finance Arjun Ram Meghwal said in a written reply.

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On whether the December 30 deadline will be extended, he said, “No such proposal for extension of deadline beyond December 30, 2016, is presently under consideration of the government.”

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To cater to the requirements of rural areas, banks have been advised to supply notes of smaller denominations (Rs 100 and less), Meghwal added.

As on November 8, the day demonetisation was announced, there were 1,716.50 crore pieces of Rs 500 and 685.80 crore Rs 1,000 notes in circulation.

To another question, Minister of State for Finance Santosh Kumar Gangwar said RBI advises banks from time to time to enhance security arrangements at their branches and ATMs.

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This include coverage of ATM sites by CCTVs and ensuring adequate training of security staff posted there.

Banks have also been advised to review and strengthen the security arrangements in their branches/ATMs to deal with instances of robberies and risk perceptions emerging from such incidents.


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