Weekly withdrawal limit raised to ₹50,000 | Fusion - WeRIndia

As the demonetization continues, many are running cashless. The Reserve Bank of India (RBI) announced the increase of withdrawal limit to ₹50,000 in cash per week. This is for holders of current/overdraft/cash credit account.

This increased limit is not applicable for personal overdraft accounts. They also announced that such withdrawals would most likely give customers ₹2000 denomination bank notes.

Another announcement from the government said that farmers can buy seeds with the banned notes of ₹500 and ₹1,000. They can do so from outlets belonging to Central or State government. Farmers can also use old notes to buy seeds from PSUs, National or State Seeds Corporations, Central or State Agricultural Universities and the ICAR after showing proof of identity.

Last week, the government modified guidelines for withdrawal of cash. They limited over the counter exchange of old ₹500, ₹1,000 notes from ₹4,500 to ₹2,000. Since this is the sowing season, the government is allowing farmers to withdraw money from banks against loans sanctioned to them to buy seeds and fertilizers.

Many people were saying that a lot of farmers did not have bank accounts which made it hard for them to buy seeds in this sowing season. As a result, the government is allowing farmers to buy new notes with old notes much easier. This is to prevent farmers from depending on local moneylenders. Customers who are KYC compliant can also withdraw up to ₹2.5 lakh for upcoming wedding ceremonies.

Those who still have old notes can exchange them with new notes until December 30. If they are past the exchange limit, they can deposit their money into their accounts. New notes of ₹2,000 and ₹500 have been released as well.

Although the demonetization has been intended at stopping black money in the country, there are several innocent people who are facing cash crunch because of it. Banks have been extremely crowded by people. One of the main reasons for this is because the usage of credit and debit cards is still not very high in the country.

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