New Delhi: The government has taken several decisions to ease cash withdrawal norms following the demonetization of old Rs.500 and Rs.1000 notes. Here is a round-up of the announcements made by the government and the RBI regarding the same, within the last 24 hours.
FARMERS PERMITTED TO BUY SEEDS WITH OLD CURRENCY NOTES
The government has decided to allow the farmers to purchase seeds with the old high denomination notes of Rs. 500 from the centers, units or outlets belonging to the Centre or state governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research (ICAR) on production of proof of identity in order to further support the farmers for the current Rabi crop.
FRESH CONDITIONS FOR WITHDRAWAL OF Rs.2.5 LAKH FOR WEDDINGS
The Reserve Bank on Monday came out with a new set of rules for people who are getting married any time soon or whose family members are getting married. People who have a wedding in their families can draw upto Rs 2.5 lakh provided that the money has been deposited in the account before November 8, 2016. Also, the money can be withdrawn only if the wedding falls before December 30. Money can be withdrawn only by the bride, groom or their parents.
BOTH OLDER AND NEWER RS.10 COINS ARE VALID
Amid confusion over the validity of Rs 10 coins, the Reserve Bank of India on Monday asserted both older and newer Rs 10 coins were legal tenders. "The Reserve Bank of India advise members of the public not to give credence to such ill-informed notions and ignore them and continue to accept these (Rs 10) coins as legal tender in all their transactions without any hesitation," RBI Principal Adviser Alpana Killiwala said.
ADDITIONAL 60 DAYS TO REPAY LOANS
In view of cash crunch being faced by borrowers, the RBI on Monday provided additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore. This is applicable to loans payable between November 1 and December 31, the RBI said in a notification. The above relaxation is available to entities running working capital accounts with any bank with the sanctioned limit of Rs 1 crore or less.
OVERDRAFT, CASH CREDIT ACCOUNT HOLDERS CAN WITHDRAW Rs.50,000 A WEEK
Further relaxing cash withdrawal norms, the Reserve Bank on Monday said overdraft and cash credit account holders can now withdraw up to Rs 50,000 in a week. Earlier, current account holders were allowed to withdraw up to Rs 50,000 in cash, in a week. Accordingly, holders of current/overdraft/cash credit accounts, which are operational for the last three months or more, may now withdraw upto Rs 50,000 in cash, in a week. However, this enhanced limit for weekly withdrawal is not applicable for personal overdraft accounts.
(With inputs from agencies)