Traders registered with APMC markets/mandis can draw up to Rs. 50K per week

New Delhi, Nov 17 (KNN) Traders registered with APMC markets/mandis will now be permitted to draw up to Rs. 50,000 per week in cash from their KYC compliant accounts as in the case of business entities.

This will enable these traders to pay wages and facilitate easy loading, unloading and other activities at the mandis, the Finance Ministry said.

The Central Government has taken several decisions to facilitate farmers, small traders, Group ‘C’ Employees of Central Government including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises in the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes.

In a release, Ministry of Finance said the Government has considered various suggestions and has taken several decisions relating to certain operational aspects of the scheme.

With the beginning of Rabi Season, the farmers need various inputs for their agricultural activities. The farmers would be permitted to draw upto Rs. 25000/- per week in cash from their KYC compliant accounts only.

These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC).

Farmers are currently selling their produce from the Kharif season in the APMC markets/mandis. The farmers who receive such payments in their bank accounts through cheque/ RTGS will be permitted to draw up to Rs. 25000/- per week in cash.

These accounts will have to be KYC compliant. This facility will enable the farmers to meet their various expenses connected with agriculture. This will also infuse lot of liquidity into the rural sector.

The last date for payment of crop insurance premium has been extended by 15 days.

It has been decided to permit families celebrating weddings to draw up to Rs. 2,50,000/- in cash from their own bank accounts.

However, the amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. This limit of Rs. 2,50,000/- will apply separately to the girl’s family and the boy’s family.

The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have to be submitted by the person to the effect that only one person from his/her family is drawing the amount.

For convenience of the people who may be on temporary visit either for work or otherwise, it has been decided to reduce this limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. This facility will be available only once per person. The reduced limit of Rs. 2000/- will take effect from 18th November, 2016.

Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs. 10,000/- in cash. This amount will be adjusted in their salary for November, 2016. It is expected that this decision will ease the pressure on the banks. (With PIB Inputs)