Farmers allowed to use scrapped Rs 500 notes for buying seeds

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The Centre government on Monday, days after allowing farmers to make cash withdrawals up to Rs 25,000 per week against sanctioned crop loans, announced that farmers will now be allowed to use scrapped 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, agriculturists were intending for the Rabi season. However, Prime Minister Narendra Modi’s decision announced on November 8 has incurred significant damage on country populace as the farming segment is totally money subordinate. Money crunch implied that agriculturists had no cash to pay cultivate hands, undermining creation of key wares. With sustenance proportions waning and no takers for old Rs 500 and Rs 1000 notes, day by day breadwinners likewise attempted to bring home the bacon.

West Bengal Chief Minsiter Mamata Banerjee, who is attempting to line up a rainbow coalition against demonetisation, asked that the Center should think of an appropriate plan of action as opposed to “announcing new changes” everyday. “The lower middle class, merchants, daily wagers, housewives are the most noticeably bad sufferers,” she said.

Interim, the Reserve Bank of India relaxed norms on money withdrawals. It said that overdraft and money credit account holders can now pull back up to Rs 50,000 in a week. Prior, current record holders were permitted to pull back up to Rs 50,000 in real money, in a week. “On a survey, it has been chosen to extend this office to Overdraft and Cash Credit accounts additionally,” the national bank said.

As needs be, holders of current/overdraft/money credit accounts, which are operational throughout the previous three months or more, may now pull back upto Rs 50,000 in real money, in a week. Be that as it may, this upgraded constrain for week by week withdrawal is not relevant for individual overdraft accounts. The Reserve Bank assist said the Rs 50,000 withdrawals might be dispensed prevalently in Rs 2,000 group monetary certificates.