Farmers can now purchase seeds with old currency notes

The farmers can still use the banned currency notes at state and central government outlets.

By: News Desk |
November 21, 2016 3:19 pm

In a major relief for the farmers, the central government on Monday announced that the farmers can now purchase seeds with old high-denomination bank notes from outlets belonging to the central or the state government, PSUs, National or State Seeds Corporation, Central or State Agriculture Universities and the ICAR.

The farmers will, however, have to produce a proof of identity for the same.

ALSO READ: Big relief! Now you can withdraw upto Rs 50,000 per week

According to an RBI release, the holders of current, overdraft and cash credit accounts, which have been operational for past three months, can withdraw up to Rs 50,000 in cash in a week.

However, the enhanced limit has not been extended for personal overdraft accounts. The central bank added that such withdrawals will be disbursed predominantly in Rs 2000 denomination bank notes.

Earlier, the government announced that it would make cash available with the farmers by permitting them to draw up to Rs 25,000 per week from their KYC compliant accounts subject to the normal loan limits and conditions apart from the other facilities announced last week.

ALSO READ: 6 ways Modi’s demonetisation masterstroke has broken BSP, SP’s back before UP elections

Besides, the government has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week, PTI reported.

Prime Minister Narendra Modi on November 8 announced a plan to curb the menace of black money and corruption in the country by tendering Rs 500 and Rs 1,000 rupee notes illegal in the country.