Exchange limit now halved to Rs.2000

Families with marriage expenses and farmers, given privileges to withdraw more than the normal limit.

The Dollar Business (Sourced from PTI

The Govt seems to have finally taken cognisance of the fact that among those standing in the long queues before ATMs and banks, there are many who have immediate and urgent expenses. Farmers, families who have marriages planned soon, can now breathe easy as the government on Thursday eased restrictions on cash withdrawal by them. But the exchange limit has been halved to Rs 2,000 by the Govt.

Economic Affairs Secretary Shaktikanta Das said families preparing for a wedding can withdraw up to Rs. 2.50 lakh from their bank account giving PAN details and a self-declaration.

However, with effect from tomorrow individuals can exchange invalid 500 and 1,000 rupee notes totalling Rs 2,000, as against Rs 4,500 earlier, only once till December 30.

Besides, farmers who have taken crop loan or have kisan credit card can withdraw Rs 25,000 per week. Also those who have got payments through RTGS or cheque deposit in KYC compliant bank account can withdraw an additional Rs 25,000 a week. This takes the total cash withdrawal limit for farmers from KYC complaint bank accounts to Rs 50,000 per week.

Prime Minister Narendra Modi had on November 8 surprised citizens by announcing demonetisation of 500 and 1000 rupee notes and since then large number of seemingly unending queues before banks and post offices are seen in order to exchange these currencies.

Select bank branches across metro cities have already started applying indelible ink on the right hand index finger of people who are exchanging notes.

"There is enough cash available with the government. This (reducing currency exchange limit) is mainly to enable larger number of people to reach the counter... We find that many people are not able to reach the counter and same persons are visiting the counter multiple times and other people are not getting the benefits," Das said.

Das said ever since the demonetisation announcement was made, a lot of representations have come to Prime Minister and Finance Minister Arun Jaitley to ease withdrawal norms for wedding purposes.

"It has been decided that for wedding ceremonies which are going on, up to Rs 2.50 lakh will be permitted to be drawn from the bank account... and that has to be drawn one person per marriage and can be drawn either from the account of the father or the mother or the account of either of the boy or girl, who are getting married, and these accounts naturally will have to be KYC compliant," he said.

Das said PAN details would have to be mentioned for such withdrawals and a self-declaration also will be obtained that the money has been drawn only from one account.

The Dollar Business Bureau - Nov 17, 2016 12:00 IST