Thursday, November 17, 2016

Exchange of Cash limit reduced to Rs 2,000 from tomorrow (18.11.2016)

NEW DELHI: The government today revised certain guidelines for the withdrawal of cash, limiting counter exchange of old Rs 500, Rs 1,000 notes from Rs 4,500 to Rs 2000 starting from tomorrow. 

Government also allowed farmers to draw money from banks against loans sanctioned to them to buy seeds and fertilisers in the ongoing sowing season, as it responds to criticism against the move to cancel high-value rupee bills. 

Farmers will be able to withdraw up to 25,000 rupees per week against their crop loans, Economic Affairs Secretary Shaktikanta Das told reporters, adding the time limit to pay crop insurance premiums has also been extended by 15 days. 

Millions of Indian farmers, however, have no bank accounts and depend on local moneylenders to fund sowing. 

"One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding," said Das. 

Key takeaways from the conference: 

  1. Government has decided that time limit in crop insurance premium cases will be extended by 15 days. 
  2. Government decides that farmers can withdraw Rs 25000 per week from a/c where farmers receive either by cheque or which is credited by RTGS. 
  3. For wedding ceremonies, upto Rs 2.5 lakh can be withdrawn from the bank account which is KYC compliant. 
  4. For over the counter exchange of old Rs 500/1000 notes, with effect from Nov 18, Rs 4,500 limit will be reduced to Rs 2000 from tomorrow. 
  5. One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding. 
  6. Task Force held a meeting and a road map has been formed to re-calibrate all ATMs; sure that it will be done soon. 
  7. Central government employees up to Group 'C' can draw salary advance up to Rs 10,000 in cash that'll be adjusted against their November salaries. 
  8. Kisan Credit Cards will be subject to same new limit. 
  9. There is enough cash available with Govt, no cash crunch. 
  10. Currency printing presses operating at over 100 per cent capacity. 
  11. Mandi traders can withdraw upto Rs 50,000 per week.

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