Demonetisation: Rs 50,000 per week withdrawal from overdraft accounts allowed; farmers can buy seeds with old Rs 500 notes

Zee Media Bureau

New Delhi: Further relaxing cash withdrawal norms, the Reserve Bank on Monday said 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.

"On a review, it has been decided to extend this facility to Overdraft and Cash Credit accounts also," the central bank said.

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

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

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

Meanwhile, in order to further support farmers for the current rabi crop, the government has decided to allow farmers to purchase seeds with the old high denomination bank notes of Rs 500, the Finance Ministry said in a statement today.

The seeds, using old notes, can be bought from the outlets of central or state governments, state-run enterprises and national or state seeds companies and agricultural universities upon furnishing a valid proof of identity.

This is in addition to the decision taken earlier for making 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 on November 17.

Government has taken several decisions to ease withdrawal restrictions for farmers, small traders, Group 'C' employees of Central Government including equivalent levels in the defence and para military forces, railways and CPSEs in the aftermath of the cancellation of the legal tender character of the old Rs 500 and Rs 1,000 notes.