RBI directive for banks to allow functioning of NEFT, cheque-clearing ,cash transaction operations on Saturday and Sunday

Without naming the defaulters, the Reserve Bank Of India said the lenders will be asked to initiate insolvency proceedings to recover the dues.
Without naming the defaulters, the Reserve Bank Of India said the lenders will be asked to initiate insolvency proceedings to recover the dues.

NewDelhi,Nov11:In view of the demonetization process and to replace the old denominations of Rs500 and Rs100 notes RBI has instructed the state banks to work extra hours and also on Saturday and Sunday on Nov 12,13,2016. the various financial instruments like Payment systems, including electronic transfers and cheque clearing, will remain open for public transactions on Saturday and Sunday.

In order to meet the anticipated heavy demand from the public in the wake of the demonetisation of old 500 rupee and 1,000 rupee currency notes, banks have been asked to remain open for public transactions on November 12 and 13. They have been asked to keep all their branches open on the two days as regular working days for transacting all business operations. “Consequent on the banks being open for public transactions on (Saturday and Sunday), it has been decided that Payment Systems (RTGS, NEFT, cheque clearing, repo, CBLO and call markets) shall remain open on Saturday November 12, and Sunday November 13, 2016,” RBI said in a notification.

Meanwhile, huge rush and long cues were witnessed at banks, which opened on Thursday after a day’s break, as people jostled to get lower value currency and new banknotes to meet their daily basic needs.ATMs have not been functioning as the banks have requested time to change the process of reloading the Rs2000 and lesser denominations.

It s estimated that theATM and bank functioning will only stabilize within a week or 10 days.

Meanwhile, the average man on the street will continue to suffer for lack of new denominations as the various govt agencies will stop accepting the defunct notes of Rs500 and Rs1000.

Finance Minister Arun Jaitley has assured small depositors that the I-T department will not hound them for depositing Rs 500/Rs 1,000 notes. He also advised people not to rush in as there is enough time till December 30 to exchange the defunct notes.

In a surprise decision, Prime Minister Narendra Modi on Tuesday night had announced the withdrawal of 500 and 1,000 rupee notes from circulation in a bid to flush out black money.

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