We’re aware that the recent demonetisation in India posed a few difficulties for people in the country, and for some of our customers too. But we’re here with good news – cash disbursements have now been normalised across 55,000 Xpress Money locations across India. Our customers can once again benefit from seamless cash payouts, as opposed to the direct account transfers and cheques that were used during the initial period of demonetisation.
Just to recap: Late last year, the Indian government declared that the INR 500 and INR 1000 notes were no longer legal tender and couldn’t be used for transactions. The aim was to get rid of the stockpiles of physical black money – much of which was stored in these denominations.
Demonetisation placed exceptional demand on other currency notes, leading to an all-round shortage of physical currency. To prevent a run on the currency, the government limited daily ATM withdrawals to INR 2,000. Even Banks across the country imposed daily limits on cash withdrawals, which only showed that not enough cash was available for payout to customers.
Money transfer firms were impacted by the cash crunch because they couldn’t access the currency to be able to effectively disburse money transfers. The situation resulted in Xpress Money’s agents not being able to access the cash needed to effectively disburse money transfers. As alternative solutions, customers in India were offered cheques and bank transfers by the agent partners.
The good news is that the moment of crisis has passed. The Reserve Bank of India (RBI) has been steadily increasing withdrawal limits as the height of the cash crunch has abated. According to a recent RBI circular, cash withdrawal limits on Current and Overdraft accounts were removed in entirety from February 1st 2017. Effective from February 20th, 2017, the RBI also increased the daily withdrawal limit for Savings accounts to INR 50,000 a day. The limit will be removed entirely on March 13th 2017.
We, at Xpress Money, understand the inconvenience caused to people in the country, and for some of our customers too – the situation then was entirely beyond our control – however, we are now on top of the situation and are delighted to inform our customers that all our agent locations in India have started handing over full cash payment to our customers. All are payout agents operate Current Accounts, which have enabled them to meet customers’ demands for cash.
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