Amidst criticism and inconvenience on the part of the general public, the government of India has announced another set of rules on the eight day of its demonetization drive. The limit of over-the-counter exchange of old notes to new ones has been reduced to Rs. 2,000 per person, that was Rs. 4,500 earlier.
On the other hand the lower level employees of up to Group C, has been given an option by the centre to draw an advance of Rs. 10,000 from their November salaries. The Indian government has relaxed the weekly withdraw limit for farmers and Agriculture Produce Market Committee traders. They are now allowed a withdrawal of up to Rs. 2.5 lakh from bank accounts for the explicit purpose of weddings. Shaktikanta Das, the Economic Affairs Secretary at a media briefing said, “To enable larger number of people to get benefit, with effect from Nov 18 the existing limit of Rs 4,500 will be reduced to Rs 2,000. This will be once per person. The usage of indelible ink continues. The move is to ensure that a larger number of people reach the exchange counters”.
Das at the media briefing was asked if the move was taken due to a shortage of cash with the banks, to which he said that it was a wrong assumption and that there is enough cash in the system. On the condition of farmers, the crop sowing process has slowed down at the beginning of the Rabi Season due to crisis of cash. The centre will soon allow the farmers to draw Rs. 25,000 per weeks against farm loans sanctioned or Kisan credit cards to help them in expenses. The farmers will also be given an option to withdraw the same amount per week from their own accounts.
Finally, since it is a wedding season in India there have been a lot of complaints from people. Das has announced that such families will be allowed to withdraw up to Rs. 2.5 lakh from one of the bank accounts, either bride or groom or immediate kin.
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