Demonetisation: Exchange of defunct notes reduced to Rs 2,000 from today

Zee Media Bureau

New Delhi: With the demonetisation creating hardships in the middle of marriage and sowing seasons, government has allowed witdrawals up to Rs 2.5 lakh for weddings and up to Rs 50,000 for farmers but more than halved the limit of exchange of defunct notes to Rs 2,000.

With effect from today 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.

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

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.

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.

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.

With PTI  Inputs