Daily cash exchange limit cut to Rs 2,000; now withdraw Rs 2.5 lakh for weddings

In a slew of new measures announced by the government to improve the disbursal of cash and to make life simpler for people, Economic Affairs Secretary Shaktikanta Das told the media that the daily currency exchange limit had been cut to Rs 2,000 from the earlier Rs 4,500 with effect from November 18. 

This means, that you can now go to a bank and exchange your old Rs 500 and Rs 1000 notes up to Rs 2,000 per day. 

As of Wednesday, banks in certain cities also started using indelible ink to put a mark on the right hand of the persons exchanging cash, to ensure that each person only exchanges cash once a day, according to the directive of the government. The move was made in a bid to cut the lines outside the banks, the government said. 

In a bid to make it easier for those families who have an upcoming wedding, the government has allowed the withdrawal of Rs 2.5 lakh from one bank account in the family. However, this will only be permitted for those accounts that are KYC compliant, Das said.

The Prime Minister Narendra Modi-led government decommissioned the use of Rs 500 and Rs 1000 notes from November 8 midnight, in a bid to rein in black money in the economy and put a halt on terror funding. Till November 30, the government said, banks will accept the old Rs 500 and Rs 1000 notes in the form of deposits or to exchange them with legal tenders. 

Since then, banks have received nearly Rs 5 lakh crore in deposits.