Over-the-counter notes exchange limit reduced to Rs. 2,000 from Friday

In an effort to reduce the burden of demonetisation on the common man, Economic Affairs Secretary Shaktikanta Das said on Thursday that families can withdraw up to Rs. 2, 50,000 for the purpose of weddings this marriage season. Stressing that the account has to be KYC compliant, Mr.Das stated that the amount of Rs 2.5 lakh can be withdrawn from only one account.

In another move to ease the milling crowds outside banks, the existing limit of Rs. 4,500 for exchange of old Rs. 500 and Rs. 1,000 notes has been reduced to Rs. 2,000 from Friday.

“To enable larger number of people to get benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,” Mr.Das told reporters. The over-the-counter exchange of Rs. 500/1,000 in return of new currency will be available “once per person till December 30“. “This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available,” he said. The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.

For farmers

Several measures were announced to ease the burden on farmers. To ensure sowing in Rabi season, the government has allowed farmers to withdraw Rs 25,000 a week against crop loan/kissan credit card. Traders in agricultural mandis will be permitted to draw Rs. 50,000 in cash per week to pay for sundry expenses like wages. While the time limit for payment of crop loan insurance premium has been extended by 15 days, government employees up to Group C have been given an option to draw salary advance in cash.

Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes. Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes.

(With inputs from PTI)

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Printable version | Apr 16, 2021 4:22:16 AM |

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