Centre eases norms for cash-starved farmers
- Cash withdrawals limit raised to 50k
New Delhi: Easing norms further to help cash-starved farmers, the Union government has announced another relief to the farmers, who have been facing problems after demonetization of Rs 500 and Rs 1000 currency notes.
The Union Finance Ministry on Monday permitted the farmers to use old Rs 500 notes for purchasing seed from any State or Central government outlets and agricultural universities.A�Earlier, they were allowed to withdraw up to Rs 25,000 per week against sanctioned crop loans. Farmers, who are now gearing up for rabi season, can purchase seed from the centers, units or outlets belonging to the Central or state governments, public sector undertakings, national or state seeds corporations, Central or state agricultural universities and the Indian Council of Agricultural Research (ICAR).
Meanwhile, the Reserve Bank of India has relaxed norms on cash withdrawals. It said the 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. a�?On a review, it has been decided to extend this facility to Overdraft and Cash Credit accounts also,a�? the RBI said.
Accordingly, holders of current/overdraft/cash credit accounts, which are operational for the last three months or more, may now withdraw up to Rs 50,000 in cash, in a week. However, this enhanced limit for weekly withdrawal was not applicable for personal overdraft accounts. The RBI further said the Rs 50,000 withdrawals may be disbursed predominantly in Rs 2,000 denomination bank notes.