Demonetisation: RBI Relieves Farmers, Allows Them To Exchange Seeds With Old 500 Rupee Notes
After two weeks of demonetising 500 and 1000 rupee notes, the government took back its decision on farmers by letting them borrow seeds from the outlets of central or state governments, state-run enterprises and national or state seeds companies and agricultural universities along with a valid proof of identity.
“Farmers may be allowed to draw up to Rs 25,000/- per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts subject to their accounts being compliant with the extant KYC norms,” the central bank said in a notification on Monday.
It is believed that the finance ministry’s decision on the old notes acceptance is purely on considering the upcoming Rabi season for which farmers need money to sow seeds
Though the limited withdrawal money is Rs 25000 per week, considering the common man’s problems like marriages, hospital expenses and farming, certain relaxation in norms is granted.
This decision on notes validity exhibits the reversal in central’s stand. Earlier, Agricultural ministry sent an appeal to the finance ministry which was then rejected.
“The government is committed to ensuring that the farmers are suitably facilitated during the Rabi season,” an official statement said.
“At present, all current account holders are allowed to withdraw, in cash, Rs 50,000/- in a week from their current account subject to certain terms and conditions and the same is being now extended to the traders registered with APMC markets/mandis,” RBI (Reserve Bank of India) said.
RBI further said in a statement that the current, overdraft or cash credit accounts holders whose accounts are operational since last 3 months or more, may now withdraw up to Rs 50,000 in cash per week. Such withdrawals may be disbursed predominantly in Rs 2000 denomination bank notes.
Though the long-term benefits of demonetization are quite assured, the current impact on transferring finance is pacing very slowly. One can find long queues in ATMs even after the 12 days of demonetization. Sources claim that nearly 70 people died till date.