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It is the first week of January, 2017 and the deadline to deposit old notes of Rs 500 and Rs 1000 has gone long past. But the queues outside RBI offices across the country show no sign of clearing up. Towards the end of December, the Narendra Modi government also came out with an ordinance that made possession or transaction of old currency illegal. The 50-day period from November 8 to December 30 saw frequent changes in rules and regulations, withdrawal and deposit limits. Even the relaxation to exchange invalid notes given to Non Resident Indians (NRIs) and Indians who were abroad came at the last minute after a lot of confusion. 
 
Initially, Prime Minister Modi in his November 8 speech had promised the citizens that they will be given adequate options even post December 30. 
 
This explains why many say they feel cheated as they relied on the Prime Minister’s assurances that genuine cases will be considered even after the deadline. But why they chose to not use the 50-day period remains often unanswered. 
 
A lady who got frustrated after failed attempts to exchange Rs 5,000 at RBI’s Delhi office for the past three days, protested by stripping in front of the bank. 
 
Our rounds at the RBI headquarters in Mumbai showed the situation was not any different as people were tensed and frustrated. Around 50 – 60 people had gathered near the entrance. Most were not aware of the change in rule that only NRIs could exchange the invalid currency at RBI branches post December 30th. They were also angry over not being able to communicate with the RBI officials for proper information. 
The officials appeared once in a while on the other side of the entrance and let the NRIs in while the rest were barred by the security personnel. Some were also under the impression that people with a passport can exchange currencies and not aware of the clause of ‘NRIs’ and ‘Indians who were abroad during the 50 days’. One shouted in anger, “Khali foreigner logon keliye, Indian keheke fayada kya hain?” 
 
But as much as one feels empathy for those who are left with invalid notes, some of the reasons given for not exchanging the notes are quite strange. However, the fact that they came to exchange small amounts does show that most of them are genuine cases. 
 
1. Cow offering: A person from Powai came with Rs. 2,500 with the money he collected from ‘gaay ka dabba’ or the offerings given to cows which are considered sacred. 
 
2. Money found inside a folded saree: A beautician from Bandra found Rs. 20,000 kept inside a folded saree in her cupboard while cleaning her house on New Year. 
 
3. Piggy bank treasure: An architecture student from Saboo Siddik College, Byculla said she found Rs 2,500 from her piggy bank when she opened it to gather money for her college picnic. When she approached Punjab National bank, they asked her to go to RBI. 
 
4. Saved it from alcoholic son: Vijaya a housewife from Thane had come to deposit the pension amount of her mother –in – law. The latter had hid an amount of Rs. 7,000 in the demonetised notes from her alcoholic son, but could not find it until recently. 
 
5. Forgotten wedding gift: A couple from Marine Lines found an envelope with Rs. 3,000 which was a blessing cover they received on their wedding in December 2015. 
 
6. Senior citizen’s memory failed her: A 78 year old lady from Vapi came with her daughter to RBI Mumbai. Her daughter said that she was losing memory and had forgotten about Rs. 5,000 pension amount kept in the cupboard. Upon finding it, she travelled all the way from Vapi, Gujarat to her daughter’s place in central Mumbai. 
 
7. Money found under the bed: A senior citizen from Kurla had brought an amount of Rs 5,500 which he found from under the bed of his wife who is bedridden. He said he did not know that only NRIs can deposit money after December 30. 
 
There were also people like two sisters who had come to exchange Rs 1,000 which they found recently, but were relaxed even if it could not be exchanged. However, the majority of the people we met were those who could not bear the loss of their hard earned money. 
 
Demonetising 86% of the notes in circulation was never going to be an easy job. And, in a country of 1.2 bn people, there will always be late comers. But considering that such a massive exercise was pushed to be completed within 50-days, maybe the government should consider some leniency and a fresh window with exchange limits for those who were left out in the process. After all, this was an exercise to flush out black money hoarders and not the economically deprived. 
 
(The article is authored by Sneha Alexander. This article first appeared in <a href="http://www.boomlive.in/cow-offering-hidden-in-saree-7-reasons-given-at-rbi-by-latecomers/">boomlive.in</a>)

‘Cow Offering’, ‘Hidden In Saree’: 7 reasons given at RBI by latecomers

You will be heavily penalised for hoarding banned Rs 500/1000 notes. The Indian government has notified a law that makes holding of more than 10 scrapped notes punishable with a minimum fine of Rs 10,000. 
 Also, a minimum fine of Rs 50,000 will be slapped for false declaration by persons who were abroad during the <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> period (November 9-December 30, 2016) and given time to deposit such scrapped notes with <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> till March 31. 
 
With the law coming into force, possession of more than 10 pieces of the old notes by individuals and more than 25 pieces for study, research or numismatics purpose will be a criminal offence, attracting fine of Rs 10,000 or five times the cash held, whichever is higher. 
 
The Act also ends the liability of the Reserve Bank and the government on the demonetised currency notes. 
 
The government took the demonetisation decision on the recommendations of the RBI's central board to eliminate unaccounted money and fake currency notes from the financial system. 
 
The law prohibits the holding, transferring or receiving of scrapped notes from December 31, 2016, and seeks to confer power on the court of a first class magistrate to impose penalty.

Holding banned notes? Get ready to pay Rs 10,000

<a href="http://www.businessinsider.in/searchresult.cms?query=recruitment&amp;sortorder=effectivedate">Recruitment firms</a> are expecting to see a 50% jump in <keyword id="6357342" type="PERSON" weightage="20" keywordseo="Hiring">hiring</keyword> in April-June quarter as the effects of <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation </a>are fading away. 
 Experts say the situation will be better from the November and December months and companies have become positive about <keyword id="6359973" type="PERSON" weightage="20" keywordseo="recruitment">recruitment</keyword>. 
 
Many companies across several sectors had put hiring in hold due to <a href="http://www.businessinsider.in/searchresult.cms?query=cash+ban&amp;sortorder=effectivedate">cash ban</a>. 
 "We will be back with a bang in the April-June quarter. Hiring will shoot up by as much as 50 per cent compared to <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> lows, led by agri-related industries. About 90 per cent of the recruiters we are speaking to are bullish on hiring," Joseph Devasia, managing director at executive recruitment firm Antal International, told ET. 
 
The hiring will be almost at all levels, from entry to senior post. 
 
"During November till mid-January, most companies had temporarily suspended hiring or put it on the backburner to firefight the immediate impact (of demonetisation) and meet revenue targets for the quarter and yearend. Those mandates are now coming back," Kris Lakshmikanth, CEO at The Head Hunters India, told ET. 
 
Sectors such as <a href="http://www.businessinsider.in/searchresult.cms?query=payment+banks&amp;sortorder=effectivedate">payment banks</a> as well as logistics will also be positive on hiring. 
 
(Image: Thinkstock)

Demonetisation effects are fading away from the job market, hiring is going to shoot up by 50%

<a href="http://www.businessinsider.in/searchresult.cms?query=atms&amp;sortorder=effectivedate">ATMs</a> are dry and <a href="http://www.businessinsider.in/searchresult.cms?query=cash+crunch&amp;sortorder=effectivedate">cash crunch</a> is back to haunt you yet again. No, the government has not <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">banned any notes</a> but the automatic teller machines (<keyword id="60866" type="PERSON" weightage="20" keywordseo="ATMs">ATMs</keyword>) are empty over the past few days and many sections are facing the problem. 
 
Reportedly, most of the 60% working ATMs are getting loaded with cash in full capacity. 
 
ET reported ATMs are not being filled to the maximum capacity of around Rs 30 lakh because of insufficient cash supply. In fact, only Rs 10 lakh is being loaded in each machine. 
 
"We are still loading less than 70% of the full capacity of ATMs and there are concerns around the (inadequate) supply of Rs 100 denomination notes," chief executive of one of India's biggest ATM manufacturing companies, which also manages ATMs, told ET. 
 The reason of the <keyword id="3888095" type="UNKNOWN" weightage="20" keywordseo="Cash-crunch-in-ATMs">cash crunch in ATMs</keyword> is attributed to high withdrawals towards the end of a financial year. 
 
"Every year we usually see a spike in supply of currency notes to meet this higher demand. The demand this year has been high as usual, but there was no increase in supply, causing a serious cash shortfall across the country," another top executive with a cash logistics company responsible for transporting cash and managing ATMs told ET, adding “Usually we see about 35% of the entire cash supply for the month of March happening in the fourth week. But that much cash was not supplied this year.”

Cash crunch is back! ATMs are dry yet again

An exporter from Noida Special Economic Zone (NSEZ) was arrested after officials of Directorate of Revenue Intelligence (DRI) recovered more than 40 kg of gold. 
 
The gold was allegedly meant to facilitate illegal exchange of old Rs 500 and banned Rs 1,000 banknotes. The gold is worth over Rs 12 crore and was recovered from various places in Delhi. 
 
The exporter is accused of diverting gold from NSEZ meant for export into the domestic market. 
 
The NSEZ unit imported gold from Dubai for the purpose of making jewellery and re-exporting it to the United Arab Emirates. 
 TOI reported Imported gold worth over Rs 150 crore is believed to have been diverted to the local market, allegedly benefitting people engaged in the illegal exchange of the scrapped tender with gold bars post <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>. 
 
DRI officials have seized fake 'export' consignments of gold, the precious metal replaced with copper, from the exporter. 
 
"In multiple searches conducted by DRI officials on the business and residential premises of the mastermind, 40 kg gold... has been seized and the mastermind of the fraud... has been arrested and remanded in judicial custody," a senior DRI officer said.

Officials recover 40kg gold worth over Rs 12 crore from Noida SEZ exporter

Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> took to LinkedIn and once again appealed people to turn towards <keyword id="6445679" type="UNKNOWN" weightage="20" keywordseo="cashless-transactions">cashless transactions</keyword>. 
 Since the announcement of <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> on Nov 8, banks have been working overtime to provide new currency notes to people. However, the lines outside the banks and ATMs are getting bigger, providing no respite to the common man. 
 Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has said the demonetisation effect will stay for at least one or two quarters. 
 
The demonetisation move wiped out 86% of the cash from India overnight as Rs 500 and Rs 1000 were announced as illegal tenders. 
Meanwhile, Modi appealed that large volume of liquid cash leads to corruption. 
 
"In 21st century India, there is no place for corruption. Corruption slows down growth and takes a toll on the dreams of the poor, neo-middle class and middle class," he wrote in an article posted on Linkedin.com. 
 
"Large volumes of liquid cash are a big source of corruption and black money," he said while referring to his "historic" decision on November 8 to scrap Rs 500 and Rs 1000 notes with an aim of ending corruption and black money. 
 
He said all young men and women should inspire others to turn cashless and this will set the strong foundations of an India where there is no place for corruption and black money. 
 
"Today we live in an era of mobile banking and mobile wallets. Ordering food, buying and selling furniture, ordering a taxi...all of this and lot more is possible through your mobiles. Technology has brought speed and convenience in our lives," he added. 
 
Along with the article, he posted pictorial references to cashless options like credit cards. 
 
"I am sure most of you are using cards and e-wallets regularly but I thought I must share with you ways through which increased cashless transactions are possible," he said. 
 
Modi said the November 8 decision offered "a unique opportunity" for small traders, who have a central role in the economic transformation of India. 
 
"Today, our trading community has a historic chance to upgrade themselves and embrace more technology, which will bring greater prosperity," he said. 
 
He said when he made the announcement, he was aware that the people of India "will face inconvenience but I had requested the people of India to bear this short term pain for long term gain. I am happy to see that the people of India are bearing temporary difficulties for the long term gain of the nation." 
 
The Prime Minister said over the last few days, he had opportunities to travel to rural as well as urban areas in Uttar Pradesh, Karnataka, Goa and Punjab. "Wherever I went, I asked the people - should corruption and black money be eliminated? Should the poor, neo-middle and middle class get their due? The answer I got everywhere was a resounding yes!"

PM Modi vouches for cashless transactions, urges people to bear short term pain for long term gain

Bank employees are facing major issues while dealing with customers lining outside banks to withdraw and deposit cash. Bankers are being locked up, harassed and even beaten up by irritated public for not providing cash. 
 In this regard, bankers want branches to be shut until the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) assures sufficient supply of currency notes. 
 
"RBI should take a view to stop banking operations for 15 days till adequate money is available. Let RBI close the banks till money comes. 
This is an unplanned move - everyone supports removal of black money - but this won't remove black money and is harassing ordinary people and bank employees,” CH Venkatachalam, chief of the All India Bank Employees' Association (AIBEA), told ET. 
 Since <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>, people are facing acute <keyword id="6380684" type="UNKNOWN" weightage="20" keywordseo="cash-Crunch">cash crunch</keyword> and lining up outside ATMs and banks for cash. When the supply dries up, they resort to unfair means. 
 
Last week, a Punjab National Bank branch in Jamshedpur was ransacked as angry customers smashed glasses and injured a lady staffer. Likewise, in Dhanbad too, a bank branch was ransacked after the manager declared it had run out of cash. 
 
"There has been no action to our appeals to the finance minister, RBI and IBA. How can we manage when there is such scarcity of money in branches?” asked Venkatachalam. 
 
"We can't blame the people - how will they manage without cash? Hardly any ATMs are operating - it's complete chaos,” he told ET. 
 
The AIBEA wrote to the finance minister on December 2, raising the issue of the acute cash shortage. "While RBI is repeatedly making public statements that adequate cash is being supplied to banks, the reality is otherwise,” it said in the letter, a copy of which is with ET. "These statements are making the public to feel that RBI is supplying cash to banks and bank staff are deliberately not extending payments.”

Harassed bankers don’t want to work until RBI supplies enough cash

<a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Indian Finance Minister Arun Jaitley</a> slammed opposition, after former <a href="http://www.businessinsider.in/searchresult.cms?query=manmohan+singh&amp;sortorder=effectivedate">Prime Minister Manmohan Singh</a> called <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a> a ‘monumental mismanagement’ and said economy will get adversely affected. 
 The opposition has alleged the government does not want a <keyword id="3852205" type="UNKNOWN" weightage="20" keywordseo="debate-on-demonetisation">debate on demonetisation</keyword> and is not bothered about the inconvenience faced by the common man. The opposition is asking <a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi&amp;sortorder=effectivedate">Prime Minister Narendra Modi</a> to take part in the debate and give his opinion on the same. So far, Modi has not spoken on <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> in the parliament. 
 
Amid the uproar in Rajya Sabha, Jaitley said, “We are ready for a debate. The opposition wanted to have a debate in presence of PM Modi and then started looking for excuses. First day it was a debate without any pre-conditions, from next day they started putting unreasonable conditions and it continues.” 
 
Jaitley tore into opposition and raked up the scams that had hit the previous Congress-led UPA government hard. 
 
“Opposition thinks demonetisation is a blunder. Don’t they think Commonwealth Games, 2G were a blunder? The entire nation has seen the government during whose rule black money was generated,” said Jaitley. 
 Earlier in the day in Rajya Sabha, <keyword id="6359397" type="PERSON" weightage="20" keywordseo="Manmohan-Singh">Manmohan Singh</keyword> said demonetisation was a blunder and would adversely affect the Indian economy. “In the long run, we’re all gone,” Singh had said. 
 
READ ALSO: <a href="http://www.businessinsider.in/Manmohan-Singh-on-cash-ban-In-the-long-run-wereall-dead/articleshow/55596645.cms">Manmohan Singh on cash ban: ‘In the long run we’re all dead’</a> 
 
“Those who didn’t consider scandals to be a blunder, they are considering demonetisation to be a blunder,” said Jaitley. 
 
Meanwhile, West Bengal Chief Minister Mamata Banerjee said the Indian government had created more havoc than Hitler.

Arun Jaitley takes on opposition, says ‘scamsters are calling demonetisation a blunder’

Post <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>, banks have been facing a lot of pressure from the tax and enforcement authorities and keeping that in mind, banks are not taking any chances in reporting "suspicious transactions" with some of the private players reporting an increase of up to 10 times. 
 Reportedly, a private bank, which used to report around 275-300 transactions a month, saw the number for Suspicious Transaction Reports (STR) filings with the <keyword id="182455" type="ORGANIZATION" weightage="20" keywordseo="Financial-Intelligence-Unit">Financial Intelligence Unit</keyword> rise to almost 3,000 during December. 
 
Another large bank said that it had seen a seven to eight-fold jump in STRs which were typically made for cash deposits of over Rs 1 crore. 
 
According to experts, the number of filings had increased as there were several more alerts in the wake of increased surveillance from tax authorities. 
 
"We are being extra cautious. The number of cases that we used to report in a month, we are now doing in a week," a senior bank official, who did not wish to be named told ET. 
 
The enforcement directorate and the tax department are also keeping an eye on the deposit of old Rs 500 and Rs 1,000 notes--especially in private banks-and have also arrest five executives on allegations of illegally helping people convert black money . 
 
Separately, 547 branches have been identified by tax authorities for heightened scrutiny as they saw abnormal activity compared to the average daily business undertaken by them earlier. 
 
The repeated queries and surveys from the agencies prompted the banks to increase the "alerts". A banker said that various parameters were used for generating the alerts with the non-KYC compliant being one of the key triggers. Similarly, banks looked at the transaction history as one of the other criteria. "If there was a dormant account or one where the volume was very low and suddenly it saw a spurt in the form of large deposits, we decided to play it safe and report it to FIU. We are not taking any chances," said an executive. 
 
"Basically, any transaction which we think is suspicious is being reported. We do not want to face the blame," a bank executive told ET. 
 
The government is analysing data on bank deposits and tallying it with tax returns in a bid to go after those who may have sought to use demonetisation as an initiative to deposit unexplained cash.

You Searched For "cash ban" and got 9 results

‘Cow Offering’, ‘Hidden In Saree’: 7 reasons given at RBI by latecomers

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Holding banned notes? Get ready to pay Rs 10,000

BI India Bureau

Demonetisation effects are fading away from the job market, hiring is going to shoot up by 50%

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Cash crunch is back! ATMs are dry yet again

BI India Bureau

Officials recover 40kg gold worth over Rs 12 crore from Noida SEZ exporter

BI India Bureau

PM Modi vouches for cashless transactions, urges people to bear short term pain for long term gain

BI India Bureau

Harassed bankers don’t want to work until RBI supplies enough cash

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Arun Jaitley takes on opposition, says ‘scamsters are calling demonetisation a blunder’

Akanksha Jain

Banks witness 10-fold rise in 'suspect transactions'

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