Farmers can now use old Rs 500 notes to buy seeds

Farmers can now use old Rs 500 notes at state-owned outlets towards the purchase of seeds, the Finance Ministry said in a statement

By: Express Web Desk | New Delhi | Updated: November 21, 2016 9:51 pm
mumbai, mumbai farmers, maharashtra farmers, maharashtra schools, currency ban, rs 500 ban, rs 1000 ban, maharashtra government, indian express news, Farmers can now use old Rs 500 notes at state-owned outlets towards the purchase of seeds, the Finance Ministry said in a statement

Days after allowing farmers to make cash withdrawals up to Rs 25,000 per week against sanctioned crop loans, the Centre on Monday announced that they will now be allowed to use old high denomination notes for purchasing seeds. Farmers can now use old Rs 500 notes at state-owned outlets towards the purchase of seeds, the Finance Ministry said in a statement.

With the onset of winter, farmers were gearing for the Rabi season. However, Prime Minister Narendra Modi’s November 8 announcement has taken a toll on rural population as the agriculture sector is entirely cash-dependent. Cash crunch meant that farmers had no money to pay farm hands, threatening production of key commodities. With food rations dwindling and no takers for old Rs 500 and Rs 1000 notes, daily-wage earners also struggled to make ends meet.

West Bengal Chief Minsiter Mamata Banerjee, who is trying to stitch up a rainbow coalition against demonetisation, asked the Centre to come up with a proper plan of action instead of “announcing new changes” everyday.  “The lower middle class, traders, daily wagers, housewives are the worst sufferers,” she said.

Meanwhile, the Reserve Bank relaxed norms on cash withdrawals. It said that 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.

With PTI inputs

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  1. R
    Raj
    Nov 21, 2016 at 9:59 am
    Nonsense
    Reply
  2. H
    Haru Mandal
    Nov 21, 2016 at 9:53 am
    Did someone say 'As you sow, SO you WILL reap'?
    Reply
  3. J
    Jholmaal
    Nov 21, 2016 at 11:40 pm
    Mumtaa is n0nsense l@dy. Who pays poor segment of Bengalis in 500 and 1000? . .. only party and club funds use these denominations. And these Bengalis do not have voice to declare that they do not need mumta to take these rubbish stand. She is celfish l@dy . . .once work is done, she kick all all her supporters.
    Reply
    1. J
      Jholmaal
      Nov 21, 2016 at 11:34 pm
      So many politicians are farmers!! . . . How will govt.monitor that they will not buy seeds of corruption? . .C0rrupt bureaucrats can easily declare acres of land for poor farmers and convert cash in their name.
      Reply
    2. S
      sundara rami
      Nov 21, 2016 at 9:20 am
      Govt. has become mad and thinks only Govt. hospitals, Govt. seed supply units etc. are only genuine. but they could cater only minuscule. implementation is totally failure. common man, farmer, labour, small trader are the worst hit. this shows arrogance and immaturity of the central govt. leaders.
      Reply
      1. A
        anamik
        Nov 21, 2016 at 9:37 am
        Daily new and ridiculous rules are being supplied by the Govt. but the Banks are denying to follow them. Very wonderful situation.
        Reply
        1. A
          anamik
          Nov 21, 2016 at 9:36 am
          What about the great speech of PM that after 12 night of 8th Nov., old big notes will be converted to just piece of paper? Very immature Govt. of the history of India. Feel pity for this.
          Reply
          1. S
            SubbuI
            Nov 22, 2016 at 5:32 am
            MOHAMOD BIN TUGHLAQ AND HITLER COMBINED NALAYAK NMODI IS BATTINGlt;br/gt;ALREADY 18 RUNS( CHANGES ON PREESURE).DIS GRACE FULL
            Reply
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