Cash rush at banks and ATMS is likely to swell as exemptions to use old defunct Rs 500 and Rs 1000 notes for paying household utility bills, fuel, taxes and fees and purchases from co-operative stores, end on Thursday.
However, according to government sources extension on exemption of old notes for essential services is under consideration and a decision on extending deadline may be taken by evening.
Extension on exemption of old notes for essential services under consideration, decision on extending deadline by evening: Govt sources— ANI (@ANI_news) November 24, 2016
After the PM Modi surprise move to demonetised Rs 1000 and Rs 500 on November 8, chaos and panic gripped the people; to deal with the huge cash demand and in a bid to ease cash rush, government had allowed to use demonetised currency at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds and petrol pumps till November 24.
But as people thronged banks and ATMs and the cash dispensing machines running dry soon, this list to use old currency notes was later expanded to include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills and ASI monument entry tickets too.
With the exemptions now expiring on Thursday to use demonetised notes at various places, the rush at banks and ATMs may rise. However, to tackle the cash rush the government has also allowed 2,500 petrol pumps, using SBI Pos (Point-of-Sale) to disburse Rs 2,000 cash to everyone with a debit card.