'No transaction' boards hung outside most post offices across the country on Wednesday after Modi government demonetized Rs 500 and Rs 1,000 notes. People hoping to exchange their high value notes at their local post offices had to return dissapointed.
In his announcement on banning Rs 500 and Rs 1,000 notes immediately, Prime Minister Modi had declared that all high value notes can be exchanged at local post offices and banks. However, all banks and post offices remained shut for cash transactions on Wednesday to prepare for exchange starting Thursday.
Post offices will begin exchanging cash upto Rs 2000 per person per day from Thursday. Similary, banks are being prepared to dispense change to customers with a cap of Rs 2000 per day. ATMs that remained shut on Wednesday are expected to be functional starting Thursday but yet again with a cap on transaction per person per day. The cap on transaction will be lifted in a phased manner according to the union government.