Several changes have been made in the announcement made by Prime Minister Narendra Modi on November 8 scrapping Rs 500 and Rs 1,000 currency notes to crack down on corruption and counterfeit currency. Several amendments have been made in the original announcement since then.

The modifications in the demonetisation step have been brought about keeping in mind two objectives - ameliorating the difficulties being faced by the people and plugging the loopholes being exploited by some dishonest people.

Initially, there was no limit on depositing old notes from November 10 till December 30. Withdrawals from banks were limited at Rs 10,000 per day and Rs 20,000 per week. But these caps were increased and so were the other provisions. Even the last dates for exemptions have been revised twice.

Some may allege that it clearly indicates that the Narendra Modi Government was ill-prepared. However, others would counter by asserting that it proves that the Centre is open to recalibrating its original move as per the feedback and need of the hour.

1. EXCHANGE LIMIT

Initially, the exchange limit for Rs 500 and Rs 1000 notes was capped at Rs 4,000 and withdrawals were restricted to Rs 2,000 per card per day, and later to Rs 4,000 per card per day.

However, the withdrawal limit was increased to Rs 2500 and exchange limit over the counter increased to Rs 4500 from 4000.

The withdrawal limit from ATMs was increased to Rs 2500 from Rs 2000 and weekly withdrawal limit to Rs 24000 from Rs 20000. The daily withdrawal limit of Rs 10000 has been removed.

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Besides, business entities having current accounts and which are operational for last three months or more have been allowed to draw Rs 50,000. This can be done in a single transaction or multiple transactions. This will enable the small business entities to pay wages to their workers and make other petty payments.

2. EXEMPTION DATES

Initially, the last date for exemptions for acceptance of old Rs 500 and Rs1000 notes for certain types of transactions was November 11. However, it has been extended twice - first till November 14 and now the last date for availing existing exemptions has been extended up to November 24.

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The last date for submission of the annual life certificate for pensioners has also been extended up to January 15, 2017. Originally, the certificate was required to be submitted in November 2016.

3. EXEMPTION CATEGORIES

Till November 11, government-authorised places, institutions and services such as hospitals, Railways, airline, bus ticket booking counters, petrol, diesel and gas stations authorised by public sector oil companies, consumer co-operative stores, milk booths, crematoriums, burial grounds, toll plazas, pharmacies, onboard rail catering and LPG cylinder supplies were authorised to accept old Rs 500 and Rs 1000 notes for payment.

However, on November 12, the Government extended the exemption on notes in certain other categories like metro rail tickets among others till November 14.

4. QUEUES FOR WITHDRAWALS

Long and serpentine queues of people were witnessed outside the ATMs throughout the country from November 10. About two dozen people reportedly died standing in these queues. Keeping this in view, the Government asked the banks to arrange for separate queues for senior citizens and Divyang (differently-abled) persons.

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Also, for public convenience, banks remained open on Saturday and Sunday (November 12 and 13).

5. INDELIBLE INK

Prime Minister Narendra Modi has held two review meetings on demonetisation with officials of the Finance Ministry and the Reserve Bank of India (RBI) so far. In the second one too, the persistent issue of long queues at banks came up for discussion. According to Economic Affairs Secretary Shaktikanta Das, it was found that in many places same set of people were visiting to get cash. They went from one branch to another branch. The unscrupulous elements were trying to convert their black money into white by going to different banks branches several times over in a day.

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As a result, the benefit of withdrawal was getting restricted to a few people. To prevent this, the idea of using indelible ink marks, like in elections, at the cash counters was mooted.

6. JAN DHAN ACCOUNT DEPOSIT LIMIT

While reviewing the demonetisation process, the Narendra Modi Government also received reports that Jan Dhan accounts were being used by other people to deposit their unaccounted cash. As a result, the Government set an upper limit of Rs 50,000 for deposits into these accounts. The source of deposits of above Rs 50,000 into these accounts will now be verified.

7. CCTV FOOTAGE OF JEWELLERY SHOPS

Minutes after PM Narendra Modi made the historic announcement in his 8 pm address to the nation on November 8, the Government learnt that some people rushed to jewellery shops to buy golden ornaments with a view to converting their unaccounted cash. While there was no bar on spending the scrapped Rs 500 and Rs 1000 currency notes, several jewellery shops remained open throughout the intervening night of November 8 and 9 as well as the next day.

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However, the Government has reportedly demanded the CCTV footage of the shops during this period and also the PAN numbers of the buyers. This is sure to catch those who had sought to convert their unaccounted cash.

8. CANCELLATION OF AIR AND TRAIN TICKETS

In the course of reviews, the Government also got the feedback that several people had booked railway and international air tickets only to get them cancelled shortly afterwards to get refunds. This was another loophole found by some. The Government immediately announced that the money from cancellation of air tickets would not be refunded. Also, it started asking for bank details of those cancelling multiple railway tickets in order to transfer the refund amount in their account.

9. BAN ON COOPERATIVE BANKS

The RBI on November 14 banned the district central cooperative banks (DCCB) from providing any exchange facility against Rs 500 and Rs 1000 notes. However, four states - Maharashtra, Gujarat, Kerala and Tamil Nadu - have strongly opposed the RBI circular stating that the DCCBs are the backbone of rural economy and the only banking apparatus available to farmers and farm labourers.

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10. DEPOSITS ABOVE RS 2.5 LAKH

The Narendra Modi Government did not put any cap on the maximum amount of cash to be deposited in banks. However, it was only a day after the announcement of the demonetisation process that the Centre warned that those depositing cash above Rs 2.50 lakh under the 50-day window till December 30 could attract tax plus a 200 per cent penalty in case of income mismatch. Any mismatch with income declared by the account holder will be treated as a case of tax evasion and the tax amount plus a penalty of 200 per cent of the tax payable would be levied as per the Section 270(A) of the Income Tax Act.