Latest on demonetisation- Exchange of notes limited to Rs 2000

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Amidst a bit of chaos and confusion following the demonetisation, the government has announced new rules to ease the situation for public. The government, on Thursday, introduced new curbs over the counter exchange of banned Rs 500 and 1000 notes. The public is in panic mode because of demonetisation and the government looks forward to giving them and banks a bit of release.

The government has reduced the exchange limit from Rs 4500 to Rs 2000, starting tomorrow,DEA Secretary Shaktikanta Das said. This means from 18th November 2016, you won’t be able to exchange more than a sum of Rs 2000 from banks per day. This move will definitely not please the common man who is already suffering a lot due to the shortage of cash. This has come four days after the limit for note exchange was raised from Rs 4000 to Rs 4500 per person.

The reason behind this move is to give more people the chance to exchange old notes for new ones. Secretary of economic affairs, Shaktikanta Das believes that it will allow a number of people to exchange notes. However, this move hints that there is a shortage of new currency in the country and the government, at present is struggling to meet the demands of people. However, Mr. Das said that there is no shortage and enough cash is there in the country.

In an effort to lessen the burden of demonetisation, Mr. Das further announced more reforms to help the public. Farmers, registered traders and those with wedding ceremonies around the corner are the main beneficiaries of the new guidelines.

Must Read : Prime Minister bans 500 and 1000 notes starting 8 November midnight

The government raised the cash withdrawal limit for farmers up to Rs 25,000 per week. Mr. Das, in a press conference, announced that farmers, who have crop loans, now can withdraw up to Rs 25,000 from the money they receive from their produce. They can withdraw this money against their sanctioned loans. This will allow them to buy seeds and fertilizers and their crops won’t be wasted. The government also extended the time limit to pay crop insurance premiums by 15 days. However, there are million of farmers in the country who don’t have bank accounts and they are dependent on private moneylenders for their funding.

The government had some good news for those families which have wedding ceremonies in the coming days. Das told the reporters that people can withdraw up to 2.5 lakhs for wedding ceremonies from KYC bank accounts. Only one member of such families, either be it father or mother, can withdraw the money. This will be a one-time withdrawal from a single account against the self declaration. As this is a wedding season in the country, there are a lot of families who have to withdraw a huge amount of cash in advance to bear the expenses of the wedding.

Mandi traders who are registered, are also allowed to withdraw up tp Rs 50,000 per week so that they can pay the labour. Most labour workers work on daily wages and they are one of the worst affected group by demonetization.

HIGHLIGHTS OF THE NEW GUIDELINES- 10 THINGS YOU MUST KNOW

1. The limit of exchange old currency with new notes of Rs 500 and Rs 1000 is reduced to Rs 2,000 from Rs 4,500 starting from Friday.
2. Family who has wedding functions in the coming days can withdraw up to Rs 2,50,000. This is a one-time withdrawal amount.
3. Only one person from wedding family can withdraw the amount.
4. Farmers can withdraw a sum of up to Rs 50,000 per week against their loans.
5. Registered traders in vegetable  markets can withdraw Rs. 50,000 a week.
6. Central government employees up to Group ‘C’ can withdraw up to Rs 10,000 salary in advance in cash. It will be adjusted against their salary in November.
7. The task force has formed a road map for the recalibration of the ATM’s.
8. Kisan credit cards will be under same new guidelines as devised by the government.
9. Time limit for crop insurance premium is extended by 15 days.
10. The government has ensured that there is enough cash available in the country.

Short Brief : Over the counter notes exchange limit reduced to Rs. 2,000 from Friday and Up to Rs 2,50,000 cash can be drawn from any bank accounts for marriages and weddings functions.

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