Reason to cheer: No more limits on cash withdrawals at ATMs

BREAKING NEWS - All limits on savings bank cash withdrawals post-demonetisation ended on Monday, as had been announced by the Reserve Bank of India (RBI) last month.

In a two-stage process, the weekly withdrawal limit per account had been raised to Rs 50,000, from Rs 24,000, with effect from February 20, and all limits on ATM withdrawals were slated to cease from March 13.

The announcement had been made by RBI Deputy Governor R. Gandhi following the fiscal's last monetary policy review announcement by the central bank in February, when it kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government's demonetisation drive.

On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.

The limits were placed following the November 8 demonetisation of Rs 1,000 and Rs 500 notes. The upper limit at ATMs was just Rs 2,500 initially and was later raised to Rs 4,500.

In January, the RBI had hiked the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly Current Account withdrawal limit to Rs 1 lakh.

The upper limit for weekly withdrawal from bank accounts had been raised to Rs 24,000 from Rs 20,000 in November.

While lifting of ATM withdrawal limits represents coming full circle for these machines in respect of demonetisation, the return to normalcy in terms of cash available in them is still awaited, indicating the slow pace of remonetisation.(READ MORE)

Withdrawal limits from banks, ATMs won't be lifted anytime soon

Breaking News - The Narendra Modi government has asked for time till late December to mid-January for the 'pain' of demonetisation to ease out. However, a major reason for the inconvenience -- withdrawal limits from banks and ATMs -- is likely to stay for longer.

After announcing his demonetisation drive on November 8, Modi has time and again asked for 50 days from the public. While no explicit instructions have been issued as to when the limits of Rs 24,000 per week for savings accounts and Rs 50,000 per week from current accounts, and Rs 2,500 per day from ATMs will be lifted, a large section of the public is hoping that these restrictions will be eased after December 30.

However, these limits will certainly not be lifted anytime soon. Even if the situation eases by mid-January, as per a statement by Finance Minister Arun Jaitley a couple of weeks back, the Finance Ministry and the Reserve Bank of India will take their time assessing the situation before lifting the caps, Business Standard has learnt from senior government sources (Read More).

PM misinterpreted: Jaitley calms nerves, says no plan to tax market gains

Breaking News - In a bid to calm frayed nerves of stock market players, Finance Minister Arun Jaitley on Sunday clarified the government has no intention to impose a tax on long-term capital gains from trading in shares. He went on to blame “some sections” of the media for “misinterpreting” Prime Minister Narendra Modi’s speech in Mumbai on Saturday.

Jaitley said: “The Prime Minister’s speech in Mumbai on Saturday has been misinterpreted in some sections of the media, which have started speculating this is an indirect reference to the fact that there could be long-term capital gains (tax) on securities transactions.”

He said such an interpretation was “absolutely erroneous,”, adding the “Prime Minister had made no such statement directly or indirectly... and therefore, I wish to absolutely clarify there is no occasion or opportunity for anybody to reach such a conclusion because this is not what the Prime Minister said, nor is the intention of the government as has been reported.”In a bid to calm frayed nerves of stock market Players, Finance Minister Arun Jaitley on Sunday clarified the government has no intention to impose a tax on long-term capital gains from trading in shares. He went on to blame “some sections” of the media for “misinterpreting” Prime Minister Narendra Modi’s speech in Mumbai on Saturday.

Jaitley said: “The Prime Minister’s speech in Mumbai on Saturday has been misinterpreted in some sections of the media, which have started speculating this is an indirect reference to the fact that there could be long-term capital gains (tax) on securities transactions.”

He said such an interpretation was “absolutely erroneous,”, adding the “Prime Minister had made no such statement directly or indirectly... and therefore, I wish to absolutely clarify there is no occasion or opportunity for anybody to reach such a conclusion because this is not what the Prime Minister said, nor is the intention of the government as has been reported.”(Read More)

Feel good budget: Social outlay may go up, health & education a priority

Breaking News - As part of a post-demonetisation gift, the government could increase spending for the coming financial year in health, education, women & child development and related social sector schemes by 10-12 per cent, Business Standard has learnt.

This would run concurrently with the increased layout on social sector by state governments, after the Fourteenth Finance Commission (FFC) recommended the latter spend more on schemes in health, education and similar segments. Most of these areas are state subjects.
The FFC had increased the devolution of taxes to states from the divisible pool, from 32 per cent to 42 per cent. However, it had reduced non-tax transfers. In its report, the 
Read our full coverage on Union Budget 2016

Y V Reddy-headed commission had said, “We urge state governments to use the additional fiscal space provided by us in the tax devolution to meet such requirements.” After it accepted the FFC recommendations, the Centre had slightly reduced some of its budgeted spending in social sector schemes for 2015-16 and 2016-17. That is set to reverse. Budget makers believe proceeds from the latest voluntary disclosure scheme, income tax raids and whatever dividends the Reserve Bank of India can pass on will enable that extra spending, government sources said.  (Read More)