Farmers Can Now Use Old 500 Notes For Seeds

After they were allowed to withdraw up to Rs. 25,000 per week against sanctioned crop loans, the Union Finance Ministry today permitted farmers to use the old Rs. 500 notes for purchasing seeds from any State or Central government outlet or agricultural university.

This move comes amid the huge losses incurred on farmers in Telangana and some other parts of India on November 19 and 20, due to the demonetization of the two currency bills.

Farmers, who are now gearing up for Rabi, can purchase seeds from the centers, units or outlets belonging to the Central or State governments, public sector undertakings, national or State seeds corporations, Central or State agricultural universities and the Indian Council of Agricultural Research (ICAR).

Earlier, farmers were allowed by the Centre to withdraw up to Rs. 25,000 a week against sanctioned crop loans.

Meanwhile, the Reserve Bank of India relaxed norms on cash withdrawals. It said that the overdraft and cash credit account holders can now withdraw up to Rs. 50,000 in a week. Earlier, current account holders were allowed to withdraw up to Rs. 50,000 in cash, in a week.

Accordingly, holders of current/overdraft/cash-credit accounts, which have been operational for the last three months or more, may now withdraw up to Rs. 50,000 in cash, in a week.

However, this enhanced limit for weekly withdrawal is not applicable to personal overdraft accounts.

The Reserve Bank further said that the Rs. 50,000 withdrawals may be disbursed predominantly in Rs. 2,000 denomination notes.