More relief to farmers, queues get shorter at banks

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New Delhi, November 21
The government on Monday announced a number of measures to provide further relief to farmers and small traders to deal with cash crunch following the banning of Rs 500 and Rs 1,000 notes.
As per the new government order, farmers can now purchase seeds with the demonetised bank notes of Rs 500 value.
Farmers can purchase seeds from the centres, 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), on production of proof of identity, the finance ministry said in a statement.
The government is committed to ensure that farmers are suitably facilitated during the Rabi season, it said.
This is in addition to the decision taken earlier for making cash available with the farmers by permitting them to draw up to Rs 25,000 per week from their KYC compliant accounts subject to the normal loan limits and conditions apart from the other facilities announced last week.
Besides, the government has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week.
Further relaxing cash withdrawal norms, the Reserve Bank today said 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.
“On a review, it has been decided to extend this facility to Overdraft and Cash Credit accounts also,” the central bank said. Accordingly, holders of current/overdraft/cash credit accounts, which are operational for the last three months or more, may now withdraw upto Rs 50,000 in cash, in a week.
However, this enhanced limit for weekly withdrawal is not applicable for personal overdraft accounts.
The Reserve Bank further said the Rs 50,000 withdrawals may be disbursed predominantly in Rs 2,000 denomination bank notes.

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