Union Government announces new set of measures to ease demonetisation policy
The government has now decided to permit families celebrating weddings to draw maximum of 250000 rupees in cash from their own bank accounts that are KYC compliant.
The Union Government on 17 November 2016 announced another set of measures to ease the impact of demonetisation policy on the people.
PM Narendra Modi on 8 November 2016 banned the currency notes of 500 and 1000 rupees and replaced them with new currency notes.
Highlights of the Measures
Relief for farmers, traders: Farmers will be permitted to draw up to 25000 rupees per week in cash from their KYC compliant accounts only. These cash withdrawals will be subjected to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC).
Traders registered with APMC markets/mandis will be permitted to draw up to 50000 rupees per week in cash from their KYC compliant accounts. This will enable them to pay wages and facilitate easy loading, unloading and other activities at the mandis.
Moreover, the government also extended the last date for payment of Crop Insurance Premium by 15 days.
Relaxation for weddings: The government has now decided to permit families celebrating weddings to draw maximum of 250000 rupees in cash from their own bank accounts that are KYC compliant. The amounts can be drawn only by either of the parents or the person getting married.
Only one of them will be permitted to draw this amount. This limit of 250000 rupees will apply separately to the girl's and boy's family. The person withdrawing such amount has to show the PAN details.
Moreover, a self-declaration is also required by the person to the effect that only one person from the family is drawing the amount. Any misuse of this facility will invite appropriate action.
Limit for exchange reduced: After thorough observations, the government has decided to reduce the limit of exchange of old 500 and 1000 rupees notes from 4500 rupees to 2000 rupees. The decision came in after officials observed that the same persons are going back to the counter again and again.
This facility will now be available only once per person.
Withdrawal of money from petrol pumps: The public sector oil marketing companies, in association with State Bank of India, will now dispense cash up to 2000 rupees per day per person. This facility will be initially available at 2500 petrol pumps across the country.
Only petrol pumps of Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum will offer such facility.
Advance salary to Central Government Employees: Central Government employees of Group C including equivalent levels in the defence and para military Forces, railways and central public sector enterprises will be allowed to draw salary advance of 10000 rupees in cash.
This amount will be adjusted in their salary for November 2016.