For Pay Day Rush, banks cut withdrawal limits, ask companies to give prepaid cards.

BANKS ACROSS the country are bracing for the next big test of their liquidity position — meeting month-end demand of lakhs of salaried employees and pensioners. To beat the imminent cash crunch, banks are setting internal daily cash withdrawal limits per account, while the government has asked private companies to make payments to employees digitally.

Banks have also suggested to large companies that they should give prepaid payment cards to their employees in lieu of cash, industry sources said.

We are making arrangements so that there aren’t any problems in the days to come. There should not be any inconvenience to the salaried class, pensioners or any section of society. We have made arrangements, and will be able to say whether these are adequate or not only on the day when money comes into the accounts of pensioners and salaried people. We’re hopeful that there won’t be any problems,” said a top official of the Bank of Maharashtra.

Original Source: http://bit.ly/2gTWYym

Black Money Tax: Government's New Income Declaration Scheme in 10 Points.

With the ban on 500 and 1,000-rupee notes now more than two weeks old, the government has proposed new rules to tax black money that is being unearthed. The bill was submitted on Monday for parliament's review by Finance Minister Arun Jaitley as the government is being attacked by a united opposition over its sudden withdrawal of 86 per cent of the notes in circulation to check black money and corruption. The move has plunged the country, especially rural India, into a major cash shortage.

1. The old 500-and 1,000-rupee notes must be deposited in banks by the end of the year. Deposits over 2.5 lakhs will be studied by tax officials.
2. Those who acknowledge they have placed black or previously untaxed money in their accounts will pay 50 per cent in a combination of levies and taxes.                                                                                                                                                                                                                       Original Source: http://bit.ly/2g0cnc2

PM Modi Says No Shortage Of Currency, Problem Lies In Where The Money Is

A day after making an impassioned appeal to the nation to bear with the hardships of demonetization for 50 days, Prime Minister Narendra Modi was in Ghazipur to inaugurate railway projects in the city. Speaking on the inconvenience faced by the public due to demonetization, PM Modi said there was no shortage of currency and the real problem lies in where the money is. Saying that he was pained by the hardships faced by the people, Modi hit out at Opposition parties saying that those with black money are nervous. Read more information visit at:  goo.gl/HKvsqB

Singling out the Congress for opposing demonetisation, he said: “Congress imposed emergency and turned the country into a prison for 19 months, just to save Indira Gandhi’s parliament seat. Congress also demonetised the 25 paise coin without asking anyone. They did something of their stature, I did of mine payroll outsourcing services.

ATMs Will Start Dispensing Rs 2000 Notes By Tomorrow: Economic Affairs Secretary.

Economic Affairs Secretary Shaktikanta Das on Monday briefed the media over the issue of demonetisation and the government measures to tackle the inconvenience reported by citizens, hours after Prime Minister Narendra Modi chaired a meeting of senior Cabinet Ministers. "The focus of the government is to activate all channels whereby cash is dispensed to the public," said Das, listing down the steps being taken to make transactions easier. Get more information visit at: goo.gl/Yej6s1

Das said that the cash holding limit for banking correspondents has been hiked to ₹50,000, adding that, "Banking correspondent will be now allowed to withdraw cash multiple times as opposed to only once a day earlier in company registration in India.