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Mumbai, Feb 13 () On the eve of the first tranche of the long-term repo operations (LTROs) announced on February 6, the Reserve Bank on Thursday said it will be conducted on a fixed-rate basis and the interest rate will remain fixed for the tenor of the operation. The monetary authority also clarified that the interest on these repos will be compounded on an annual basis and will be conducted at the prevailing repo rate. Deploying an out-of-the-box tool to ensure permanent and deeper liquidity in the system, which hovers around Rs 2.5 lakh on a daily basis now, the Reserve Bank on February 6, announced Rs 1.5 lakh crore of long-term reverse repo operations beginning Friday when it would conduct an LTRO for Rs 50,000 crore. It can be noted that the reverse repos were on average overnight, or intra-day and the longest so far has been 14-days. But now the central bank is offering it in one-year and three-year tenors. In a long FAQs on LTROs, the central bank on Thursday said the interest payout on LTROs will have to be made on maturity of the LTROs--on the reversal date-- and that "interest be calculated on a fixed-rate basis and the rate will remain fixed for the tenor of the operation. The interest will be compounded on an annual basis." The participants will have to offer securities as collateral for the complete tenor of LTRO and the residual maturity of the securities offered as collateral should be equal or more than the tenor of the LTRO at inception, it said. It also said the securities offered as collateral can be substituted at a later date as many times as they wish to in terms of extant guidelines. However, at any point of time, the residual maturity of replacement securities should not be less than the remaining tenor of the LTRO, it added. It further said the current margin requirements under LAF as per extant guidelines will be applicable for LTROs as well and also the collateral offered under LTROs will be subjected to variation margin. The securities offered as collaterals will be marked-to-market on a quarterly basis on the basis of the latest prices published by Financial Benchmarks India, the regulator said. The central bank also clarified that the maximum amount that a single market participant can bid is less than or equal to the notified amount. But warned that it may reject all the bids of the participant if the total bid amount submitted by the participant exceeds the notified amount. BEN MRMR

Long-term reverse repos to have fixed interest rate: RBI

New Delhi, Mar 31 () Banks have started sensitising their branches about three months' moratorium on all term loans, including home, auto and crop loans, to help customers in overcoming financial difficulties due to the coronavirus outbreak and subsequent nation-wide lockdown.Several banks on Tuesday said they have informed and provided their branches with the detailed guidelines on various schemes announced by the RBI recently and customers are being sent messages individually on their registered mobile number about the EMI payment.Union Bank of India Managing Director Rajkiran Rai G told that branches have been informed about with respect to moratorium on all term loans."In case of those who have opted for ECS route for EMI deduction, customers are given the option of availing the facility by informing the branch concerned through mail or other digital medium," he said.Banks on its own unilaterally cannot stop ECS payment due to legal issue but the customer has the option of requesting bank to stop it, Rai said.He further said the customers whose income has not been impacted are encouraged to continue payment as per the scheduled."As per COVID 19 regulatory package of RBI, Indian Bank allows a moratorium by deferring payment of EMI/ Term Loan Instalments &amp; Interest/ Interest on Working Capital for 3 months w.e.f 1st March 2020," a tweet issued by the banks said.Another public sector lender PNB said it presents relief scheme for its customers. "In view of COVID-19, it has been decided to defer payment of all installments on term loan and recovery of interest on cash credit facilities falling due between March 01,2020 and May 31 2020."Canara Bank tweeted, "In terms of Covid 19 - RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 &amp; repayment period gets extended accordingly. SMS also has been sent to customers to avail the same." With banks clarifying their positions on EMI moratorium, it will help clear doubts of customers who were confused after getting payment reminders from lenders.Last Friday, the RBI had announced that all term loans, including retail and crop loans and working capital payments, will be covered by the three-month moratorium. Banks will now have discretion in deciding the limits on working capital, with RBI saying that no payment miss should be considered a default and reported to credit information companies."The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period," the RBI said.Deferred instalments under the moratorium will include principal and/or interest components, bullet repayments, EMIs, credit card dues, it said."Lending institutions shall frame board-approved policies for providing the above mentioned reliefs to all eligible borrowers. Wherever the exposure of a lending institution to a borrower is Rs 5 crore or above as on March 1, 2020, the bank shall develop an MIS on the reliefs provided to its borrowers which shall inter alia include borrower-wise and credit-facility wise information regarding the nature and amount of relief granted," it said.Following the announcement, the banks just had one working day to finalise the details and issue instructions to branches, a senior official of another public sector bank said.As soon as finer points on implementation of moratorium came from the Reserve Bank, the official said, board approval was sought as per the direction of the central bank and necessary instructions have been issued to staff regarding their implementation.Yesterday, the Agriculture Ministry said that farmers will continue to get short-term loan of up to Rs 3 lakh at a subsidised interest rate of 7 per cent, and prompt repayers will get it at four per cent as the government extended the subsidy to banks till May 31.The decision, which are implemented through banks, comes as many farmers are not being able to go to banks for payment of their loan dues on account of restrictions imposed due to the lockdown.Besides, FAQ are expected to be issued by Indian Banks Association on the various measures announced by the Reserve Bank to the benefit of customers. DP MKJ

Covid-19: Banks sensitise branches on EMI moratorium, other RBI relief measures

The <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> Friday said it would hear on November 23 the plea filed by Rajya Sabha MP Binoy Viswam seeking direction to the RBI for framing regulation to ensure that data collected on UPI platforms is not "exploited" or used in any manner other than for processing payments. The matter came up for hearing before a bench comprising Chief Justice S A Bobde and Justices A S Bopanna and V Ramasubramanian which listed it for hearing next week. On October 15, the apex court had sought responses from the Centre, Reserve Bank of India (RBI), National Payments Corporation of India (NPCI) and others including Google Inc, Facebook Inc, WhatsApp and Amazon Inc on the plea. Viswam, the Communist Party of India (CPI) leader, has sought a direction to the RBI and the NPCI to ensure that data collected on Unified Payments Interface (UPI) platforms is not shared with their parent company or any other third party under any circumstances. "In India, the UPI payments system is being regulated and supervised by Respondent no. 1 (RBI) and Respondent no. 2 (NPCI), however the RBI and the NPCI instead of fulfilling their statutory obligations and protecting and securing the sensitive data of users are compromising the interest of the Indian users by allowing the non-compliant foreign entities to operate its payment services in India," the plea has alleged. "The RBI and NPCI have permitted the three members of 'Big Four Tech Giants' i.e. Amazon, Google and Facebook/WhatsApp (Beta phase) to participate in the UPI ecosystem without much scrutiny and in spite of blatant violations of UPI guidelines and RBI regulations," it claimed. The plea has alleged that this conduct of RBI and NPCI put the sensitive financial data of Indian users at huge risks, especially when these entities have been "continuously accused of abusing dominance and compromising data", among other things. It said these allegations have become particularly worrisome at a time when India has banned host of Chinese applications on the ground that those applications were or could be used for data theft and could lead to security breaches. It has further sought a direction that RBI and NPCI should ensure that WhatsApp is not permitted to launch full scale operations of 'WhatsApp Pay' in India without fulfilling all legal compliances to the satisfaction of the court regarding requisite regulatory compliances. It said that in April 2018, the RBI, with a view to secure the data of Indian users, had issued a circular directing all system providers to ensure that entire data relating to payment systems operated by them are stored in systems only in India and they were asked to ensure compliance by October 15, 2018. The plea claimed that later, the RBI toned down the April 2018 circular by issuing Frequently Asked Questions (FAQs) and permitted processing of all payment transaction abroad, including domestic transactions. In the said FAQ it was clarified that in cases of data processing done abroad, the data should be deleted from the systems abroad and brought back to India within 24 hours, the plea said. It has sought the apex court's direction to declare the FAQ dated June 26, 2019 issued by the RBI as ultra vires to the circular dated April 6, 2018. The plea referred to another pending petition in the apex court and said that in that matter, the counsel appearing for WhatsApp had undertook that his client would not go ahead with payment services without complying with all the regulation in force. It alleged that Google and Facebook already have access to "immense personal data of millions of Indian users" and if they are permitted to collect "unrestricted financial data" of Indian users while operating at the UPI platform, the same would give them "draconian control" over sensitive Indian data. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/mumbais-massive-power-cut-last-month-may-have-been-the-work-of-hackers/articleshow/79318282.cms">Mumbai’s massive power cut last month may have been the work of hackers</a> <a href="https://www.businessinsider.in/stock-market/news/vodafone-idea-shares-jump-after-selling-stake-in-indus-towers-for-3760-crore/articleshow/79316662.cms">Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale</a> <a href="https://www.businessinsider.in/tech/apps/news/pubg-mobile-india-was-supposed-to-launch-today/articleshow/79315462.cms">PUBG Mobile India was rumoured to launch today — but there is no official update from the company</a>

Plea for regulation to ensure UPI data is not 'exploited' to be heard by the Supreme Court on November 23

New Delhi, Mar 11 () Yes Bank on Wednesday said its inward real-time gross settlement (RTGS) services have been enabled to allow customers to make payments towards their credit card dues and loan obligations from other bank accounts. The announcement comes a day after its customers were allowed inward IMPS and NEFT services for the same purposes. RTGS is used for payments of over Rs 2 lakh, while payments below this amount can be made using NEFT. Besides, loan and credit cards repayments to the bank can also be done through IMPS from other bank accounts. "Inward RTGS services have been enabled. You can make payments towards YES BANK Credit Card dues and loan obligations from other bank accounts," the bank said in a tweet on Wednesday. Meanwhile, in 'moratorium-related FAQs' posted on its website, crisis-hit Yes Bank has said services such as online remittances, clearing of cheques and demand drafts as well as outward payment of EMIs will continue to remain under restriction during the moratorium period. However, if an employer has a current account with Yes Bank and wants to pay salaries to employees, there will not be any problem in doing so. As per the FAQs, Yes Bank said outward online remittances, including RTGS and NEFT, are still suspended. "All clearing activities are suspended as of now." "Your EMIs (equated monthly instalments) will be honoured up to the prescribed limit, subject to reinstatement of clearing activities," it said. On March 5, the Reserve Bank of India (RBI) in consultation with the government put a moratorium on Yes Bank till April 3, citing serious financial mismanagement at the private sector lender. During the period, customers are not allowed to withdraw more than Rs 50,000. The bank on Tuesday allowed inward IMPS and NEFT services to enable its customers to make payments towards Yes Bank credit card EMIs and loans through other bank accounts. The move came after its customers complained that they were not able to make payments towards their Yes Bank credit and loan repayments and were anxious about being levied a penalty for no fault of theirs. Besides, within the limit of Rs 50,000, the Mumbai-headquartered lender has also allowed its customers to withdraw money from its own as well as other bank ATMs. In the FAQs, on a query as to what will happen if someone has written and issued cheques to clients, Yes Bank responded, "All clearing activities are suspended as of now as per the directive. Your cheques already issued will not be honoured till the clearing activities are restarted or further directive from regulator." On another query as to what will happen if someone has already dropped a cheque at Yes Bank counter, it said that as all the clearing activities are suspended, "Yes Bank DD/cheques will not be presented in clearing till further instructions or till reinstatement of clearing activities." However, on a query what if an employer holds a current account with Yes Bank and needs to make withdrawal of more than Rs 50,000 to pay salaries to employees, the lender said it can be done. "Yes Bank current account can be debited for more than Rs 50,000 towards disbursement of salaries in the accounts maintained with Yes Bank only," it clarified. Further, it also said transfer from one Yes Bank account to another will be allowed without any restriction. "However, customers can withdraw in a sum up to an aggregate of Rs 50,000 from all these accounts in the moratorium period till April 3, 2020," it added. If one wishes to liquidate a standalone fixed deposit in Yes Bank, it said the branches can liquidate standalone fixed deposits (FDs) amounting less than Rs 20,000 along with interest and pay in cash as per process. "For FDs equal to or above Rs 20,000 (along with interest) but less Rs 50,000 (along with interest), branches can issue demand draft (DD) to customers, however that DD can be presented for clearing only once the clearing services are re-instated," it said. Since the bank was placed under the moratorium on March 5, a sense of panic gripped among customers across the country, who were seen queuing up at bank branches and ATMs to withdraw money. Yes Bank said its ATMs are functional and customers can withdraw money from there. Services such as digital payments supported by Yes Bank also faced outages in the initial stages, which now have been restored. Among others, prepaid meal and forex cards services are also affected due to the sudden oversight on the private sector lender. During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. The RBI has initiated a draft reconstruction scheme for the private sector lender according to which State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore. On Monday, Yes Bank's RBI-appointed administrator Prashant Kumar hoped that the moratorium on the bank would be lifted by this weekend. KPM HRS

Yes Bank users can now make over Rs 2 lakh payments towards loans, credit cards via other bank a/cs

Mumbai, Apr 21 () The Reserve Bank on Tuesday said banks will have 45 days to invest the cheaper funds raised through the second version of the targeted long-term repo operations (TLTROs), in view of disruptions due to the coronavirus outbreak.Like in the case of the first TLTROs, the central bank has retained the penal clause of paying an additional 200 bps interest over the 4.40 repo rate for the unutilised fund.The move will help more small and medium non-banking financial companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs) -- which typically have lower ratings -- enter the debt market and raise cheaper funds as the debt supply from these companies are far and few. In the TLTRO, the maximum time frame to invest in debt instruments like corporate bonds, commercial papers and NCDs was 30 days and a failure would involve them paying additional penal interest of 200 bps over the repo.Giving 45 days to use the funds, the RBI in an FAQ on Tuesday said, "based on the feedback from banks and taking into account the disruptions caused by Cvoid-induced lockdowns, it has been decided to extend the timeline to deploy funds under the TLTRO 2.0 scheme from 30 working days to 45 working days from the date of the operation".Funds that are not deployed within 45 days will be charged interest at the prevailing policy repo rate plus 200 bps for the number of days the fund remains un-deployed and the incremental interest liability will have to be paid along with regular interest at the time of maturity, the regulator said.Under the TLTRO 2.0 scheme announced on April 17, at least 50 per cent of the total funds availed under the scheme has to be deployed in specified securities issued by small NBFCs of asset size of Rs 500 crore and below, mid-sized NBFCs of asset size between Rs 500 crore and Rs 5,000 crore and MFIs. The objective is to ease liquidity stress and their impediments to market access. To incentivise banks' investment in the specified securities of these entities, it has been decided that a bank can exclude the face value of such securities kept in the HTM category from computation of adjusted non-food bank credit for the purpose of determining priority sector targets/sub-targets. This exemption is only applicable to the funds availed under TLTRO 2.0.In another significant move, RBI said under the TLTRO 2.0 scheme, there is no specification of the quantum of money to be invested in debt papers as against the earlier prescription of 50 percent of the TLTRO fund in fresh papers and the rest 50 percent to be invested in secondary market instrument.The RBI said the relaxation is to provide banks flexibility in investment and that the limit is fungible between primary and secondary market.In another significant relaxation, the RBI said eased the 10 percent cap on TLTRO 2.0 funds in one single company/group saying the "cap applies only to the fourth TLTRO conducted on April 17. It does not apply to the TLTROs conducted before April 17 or to TLTRO 2.0."But under the TLTRO 2.0, to0, the specified securities acquired with this fund has to be kept in HTM (held to maturity) category for computation of adjusted net bank credit for the purpose of determining priority sector targets/sub-targets. This has to be maintained throughout the life of the investment. Also, banks will have to necessarily continue to hold an amount equivalent to what it was holding as on March 26, 2020 in their HFT/AFS (held for trade/available for sale) portfolio for the tenor of TLTRO borrowing.There is no maturity restriction on the specified securities to be acquired under TLTRO scheme. However, the outstanding amount of specified securities in bank's HTM portfolio should not fall below the level of amount availed under TLTRO scheme and that the specified securities acquired under TLTRO scheme will be allowed to remain in HTM portfolio till their maturity. BEN MKJ

Banks get 45 days breather to invest TLTRO 2.0 funds

New Delhi, Apr 1 () Three-month moratorium on EMI payments offered by banks is unlikely to bring much relief to borrowers hit by COVID-19 lockdowns as they will have to bear the extra cost of interest charged by lenders and a longer repayment period, according to experts. Experts feel that the three-month moratorium on repayment on loans to help people fight the impact of coronavirus seems to be benefiting banks rather than borrowers as they will have to pay accumulated interest through increased number of EMIs. It is an expensive proposition for any borrower to opt for three-month suspension as announced by the RBI under the relief measures to mitigate the hardship of those hit by the outbreak of COVID-19 pandemic. Last Friday, the RBI had announced that all term loans, including retail and crop loans and working capital payments, will be covered by the three-month moratorium. Banks will now have discretion in deciding the limits on working capital, with the RBI saying that no payment miss should be considered a default and reported to credit information companies. It seems like a double whammy for borrowers as on one side income has been hit due to COVID-19 pandemic and on the other hand, there is a threat of increased tenure if they opt for RBI relief measure. SBI managing director C S Setty said it has two components- people who have term loans and the business units that have working capital loans. "In the case of term loans, the RBI has clarified that the instalments, which includes principal as well as interest, where the instalments are falling due between March 1 and May 31, will be deferred for three months. "So, in a term loan where the instalments are deferred and interest is also deferred means it is to be back ended. No point in again loading the term loan interest right away after three months, which customers would find it difficult," he said. So, what SBI is doing is that these three monthly installments that are falling in this period, will be back ended at the end of the repayment period, he said, adding, any deferment of interest over such long period, if it is there, will entail additional costs because it is not interest waiver, it is interest deferment. The accrued interest will be collected by the lender in the form of additional EMIs from those borrowers who opt for three months moratorium. "We have been telling our customers through social media that if you have the ability and cash flow to pay, it makes sense to pay this amount to avoid the cost. But, the important thing is if you want additional cash flow, you avail this facility, and it costs you," he added. In case of working capital, he said, three months interest will not be applied to the account but it will be applied immediately after the three months. In a note to customers, SBI said, "Interest shall continue to accrue on the outstanding portion of the term loan during the moratorium period". Explaining the financial burden with the help of an example, SBI said for a home loan of Rs 30 lakh with a remaining maturity of 15 years, the net additional interest would be approx Rs 2.34 lakh equal to eight EMIs for those borrowers who opt for the moratorium. "For an auto loan of Rs 6 lakh with a remaining maturity of 54 months the additional interest payable would be Rs 19,000 approx equal to additional 1.5 EMIs". Releasing frequently asked questions (FAQ) Indian Banks'' Association (IBA) said that borrowers whose incomes have not been impacted should pay their EMIs in time. "You may take the benefits under this (RBI) package if there is a disruption in your cash flows or there is loss of income. However, you must take into account that the interest on the loans, though not mandatorily payable immediately and gets postponed by 3 months, continues to accrue on your account and results in higher cost," IBA, an association of banks, said. To give you a perspective, it said, "suppose your loan outstanding is Rs 1,00,000 and you are charged 12 per cent rate of interest on your loan, then every month you are liable to pay Rs 1,000 as interest. In case you opt not to service the interest every month, you are liable to pay interest at 12 per cent per annum, and accordingly you will pay Rs 3,030.10 at the end of 3rd month". Similarly, in case the interest rate is 10 per cent, you are required to pay Rs 833 per month, or Rs 2,521 after three months, it added. Concerning credit card dues, IBA said, there is a requirement to pay a minimum amount and if it is not paid the same gets reported to Credit Bureaus but in view of the RBI circular, the overdue in the credit card account do not get reported to the credit bureaus for a period of three months. "However, interest will be charged by the credit card issuer on unpaid amount. You should check from your card provider to arrive at interest payable. Although no penal interest will be charged during this period, you must remember that the interest rate on credit card dues are normally much higher compared to normal bank credit and you should take a decision accordingly," it said. PNB Housing Finance said that there will be an increase in balance tenure by three months and a possible rise in EMIs for those customers opting for the moratorium. DP HV CS ANZ MRMR

EMI moratorium: Borrowers unlikely to get significant gains; banks to charge interest later

New Delhi, Mar 16 () Yes Bank customers will be able to access full banking services from Wednesday evening, as the moratorium will be lifted earlier. The RBI had on March 5 put a moratorium on Yes Bank restricting withdrawals to Rs 50,000 per depositor till April 3. However, the government in a notification on Saturday said the moratorium will be lifted by 18:00 hrs on March 18. "We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services," Yes Bank said in a tweet. "You will also be able to access all our digital services &amp; platforms @RBI @FinMinIndia," it said. The government on Saturday notified the reconstruction plan for cash-strapped Yes Bank and said the moratorium will be lifted by 18:00 hrs on March 18, much earlier than the earlier date of April 3. "The order of moratorium on the reconstructed bank issued by the government...shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this scheme," the notification said. The lender has posted a net loss of Rs 18,654 crore for third quarter ended December 31 due to huge provisioning for bad loans. It had posted a profit of Rs 1,001.8 crore during December quarter of 2018-19. "You will be able to use your YES BANK cards and accounts across wallets like Paytm, Amazon Pay and Freecharge among others from March 18, 2020, 18:00 hours," the bank said in an FAQ on its website. Besides, the customers have been allowed for inward RTGS/NEFT/IMPS based transaction services to pay for their Yes Bank credit card bills and loan EMIs from any bank accounts including Yes Bank accounts. "Outward NEFT/IMPS/RTGS will resume from March 18, 2020, 18:00 hours. The limits for transactions across digital channels will continue to remain what they were prior to the imposition of the moratorium. However, from March 19, 2020 post commencement of banking hours, transactions at branches will not have any limits," it said. Among others, customers will be able to pay towards their utility bills and use the UPI platform, Google Pay and PhonePe, Paytm, Amazon Pay, Freecharge. "You can withdraw your Yes Bank FDs (fixed deposits) and RDs (recurring deposits) after the moratorium is revoked from March 18, 2020, 18:00 hours. Standard charges will apply on the same. You will be also able to access all services available through digital channel/platforms (Net Banking/ Mobile Banking etc)," it added. Customers can also initiate "stop a payment" service, Yes Bank said. The other service that remains inactive now is cheque clearing because clearing activities are suspended as per the directive. Customers who use forex card can also not use such services. "Your cheques already issued will not be honoured till the clearing activities are restarted or further directive from regulator," it added. KPM KPM ANUANU

Customers can access all banking services from Wed evening: Yes Bank

Wait! If you thought you would exchange any amount of money with old <a href="http://www.businessinsider.in/This-is-where-Rs-2000-notes-were-printed-during-August-Sept/articleshow/55370513.cms">Rs 500 and Rs 1000 denominations</a> from bank, that’s not at all true. As per the Frequently Asked Questions (FAQs) on the RBI website, you can exchange maximum upto Rs 4000 per user. And it’s not Rs 4000 per day, as believed by many. 
 
In the "Withdrawal of Legal Tender Character of existing Rs 500 and Rs 1000 Bank Notes", the <a href="http://www.businessinsider.in/This-is-where-Rs-2000-notes-were-printed-during-August-Sept/articleshow/55370513.cms">RBI</a> website explains the old de-monetised notes can be exchanged at any <keyword id="3838278" type="UNKNOWN" weightage="20" keywordseo="issue-office-of-the-reserve-bank">Issue Office of the Reserve Bank</keyword> or any branch of public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks for a period up to and including the 30th December, 2016. However there are a few conditions applied. 
 
The limit of Rs 4000 per person is at one time exchange allowed till this decision is reviewed 15 days from November 8 i.e. on November 22nd. Further, RBI has not issued any clarification to the contrary so far. 
 
However, quite obviously this rule is being currently circumvented by people visiting branches of different banks with the same ID proof or with different <a href="http://www.businessinsider.in/This-is-where-Rs-2000-notes-were-printed-during-August-Sept/articleshow/55370513.cms">ID proofs</a>. It appears unlikely that given the short time at their disposal and the current pressure of work bank officials would be able to cross check with branches of other banks. 
 
The confusion has arisen because of the RBI instructions regarding cash withdrawals from ATMs, which state: Withdrawal from ATMs shall be restricted to Rs 2,000 per day per card up to 18th November, 2016 and the limit shall be raised to Rs 4,000 per day per card from 19th November, 2016. 
 
However, it is to be noted that when a person is withdrawing from the <a href="http://www.businessinsider.in/This-is-where-Rs-2000-notes-were-printed-during-August-Sept/articleshow/55370513.cms">ATM</a> he/she is drawing from his/her own bank account and NOT exchanging notes. Quite obviously, RBI has restricted the exchange of notes to Rs 4000 per person till further review. 
Since all the instructions regarding withdrawal from ATM and savings account have been specified for per day, it has been inadvertently assumed that exchange of old notes worth Rs 4,000 limit is also per day.

You Searched For "rbi faq" and got 8 results

Long-term reverse repos to have fixed interest rate: RBI

PTI

Covid-19: Banks sensitise branches on EMI moratorium, other RBI relief measures

PTI

Plea for regulation to ensure UPI data is not 'exploited' to be heard by the Supreme Court on November 23

PTI

Yes Bank users can now make over Rs 2 lakh payments towards loans, credit cards via other bank a/cs

PTI

Banks get 45 days breather to invest TLTRO 2.0 funds

PTI

EMI moratorium: Borrowers unlikely to get significant gains; banks to charge interest later

PTI

Customers can access all banking services from Wed evening: Yes Bank

PTI

You can exchange old denominations of Rs 500 and Rs 1000 worth Rs 4000 only once

BI India Bureau

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