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ATMs will dispense Rs 50 notes: Reserve Bank of India

Speed News Desk | Updated on: 11 November 2016, 15:10 IST
ATMs will dispense Rs 50 notes: Reserve Bank of India
ATMs will dispense Rs 50 notes: Reserve Bank of India

After Prime Minister Narendra Modi's announcement on 8 November declaring Rs 500 and Rs 1,000 notes as illegal tenders, the Reserve Bank of India (RBI) has now announced that Rs 50 notes can be withdrawn from ATMs.

Until now, Rs 100 note was the lowest denomination that could be withdrawn from any ATM in India.

According to RBI, the move will help ease the people who are strapped for cash.

Also Read: What limited inconvenience, PM Modi? Take a look at ground reality in cash-strapped India

Finance Secretary TK Pande told reporters on 10 November that the new Rs 1,000 notes will return with new security features.

After PM Modi's address, the government had announced that cash above Rs 2.5 lakh deposited in banks following the scrapping of Rs. 500 and Rs. 1,000 notes could attract a tax and a 200% penalty in case it is disproportionate to the account owner's income.

Also Read: Demonetisation program: Read to end your confusion, especially those who have undisclosed cash

The banks have been asked to keep the details of PAN card of people depositing such large amounts over the 50-day window till 30 December.Jewellers have been told to keep the PAN details of people buying jewellery in exchange for cash payments. Action will be taken in case of non-compliance.

Also Read: Scrapping of high-value notes: Deposits above Rs. 2.5 lakh to face tax, penalty of 200% on mismatch

"We will be getting reports of all cash deposited during the period of 10 November to 30 December, 2016, above a threshold of Rs. 2.5 lakh in every account," Revenue Secretary Hashmukh Adhia said.The Income Tax department, he said, will match this with the income tax returns filed by the depositors. In case of a mismatch, "suitable action may follow," Adhia said.

In such a scenario, the tax amount plus a penalty of 200% of the tax payable would be levied under the relevant sections of the Income Tax Act.

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Adhia said small businessmen, housewives, artisans and workers who had cash lying as savings at home should not be worried about any tax department scrutiny. "There will be no harassment by the Income Tax Department for such small deposits made," he said.

Regarding the purchase of jewellery, he said, "We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised." When cash deposits of the jewellers are scrutinised against sales, "it will also be checked whether they have taken the PAN number of the buyer or not," he added.

--With PTI inputs

First published: 11 November 2016, 14:54 IST
 
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