The current limit to exchange discontinued Rs 500 and Rs 1000 will be reduced to Rs 2000 from the existing cap of Rs 4500 from Friday, Economic Affairs Secretary Shaktikanta Das said on Thursday.
In a bid to ensure a smooth sowing season, the government on Thursday allowed farmers to withdraw up to Rs 25,000 per week from their designated bank accounts and a similar additional amount credited to their bank towards produce they sell to state agencies.
This apart, traders who are registered with the Agricultural Produce Marketing Committees can withdraw up to Rs 50,000 per week for a smooth procurement process, Economic Affairs Secretary Shaktikanta Das told reporters.
Here are the highlights of his statement to the media:
1. Over the counter exchange of old Rs 500/1000 notes, with effect from Nov 18, will be reduced to Rs 2000 from the existing Rs 4,500 limit.
2. Govt decides that farmers can withdraw Rs 25,000 per week from accounts where farmers receive the money either by cheque or which is credited by RTGS a/c.
3. Govt has decided that time limit in crop insurance premium cases will be extended by 15 days.
4. For wedding ceremonies, upto Rs 2.5 lakh can be withdrawn from bank accounts which are KYC compliant.
5. Govt decided to permit farmers to draw upto Rs 25,000 per week against crop loans sanctioned and credited to their accounts.
6. Registered traders with APMCs can draw up to 50,000 rupees per week.
7. Central government employees of Group C rank and below can draw salary advance up to Rs 10,000 in cash that will be adjusted against their November salaries. This will also apply to employees of Indian Railways, defence and state-run units.
8. Inedible ink which is to be used to identify customers who have already exchanged notes are flown into different parts of the country
"Agriculture is an important component. We are at the commencement of the Rabi season. We want to ensure farmers get smooth supply of fertilizers and other items," Das said.