New Delhi: With the demonetisation creating hardships in the middle of marriage and sowing seasons, the government Thursday allowed withdrawals up to `2.50 lakh for weddings and up to `50,000 for farmers but more than halved the limit of exchange of defunct notes to `2,000.
Economic affairs secretary Shaktikanta Das said the families preparing for a wedding can withdraw up to `2.50 lakh from bank account giving PAN details and a self declaration.
However, with effect from Friday individuals can exchange invalid 500 and 1,000 rupee notes totalling `2,000, as against `4,500 earlier, only once till December 30.
Besides, farmers who have taken crop loan or have kisan credit card can withdraw `25,000 per week. Also those who have got payments through RTGS or cheque deposit in KYC compliant bank account can withdraw an additional `25,000 a week. This takes the total cash withdrawal limit for farmers from KYC complaint bank accounts to `50,000 per week.
Prime Minister Narendra Modi had November 8 surprised citizens by announcing demonetisation of `500 and `1,000 notes and since then there have been a large number of seemingly unending queues in front of banks and post offices with people eager 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.
A lot of representations have come to the Prime Minister and finance minister Arun Jaitley to ease withdrawal norms for wedding purposes, since the demonetisation was announced, he said.
“It has been decided that for wedding ceremonies which are going on, up to `2.50 lakh will be permitted to be drawn from the bank account… and that has to be drawn by 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.
Press Trust of India
