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Relaxation to rural poor and small businesses, changes in cash withdrawal norms

New Delhi: In order to help the rural poor and small businesses the government has relaxed cash withdrawal norms from banks on Monday. Economic affairs secretary Shaktikanta Das said businesses with current accounts active for three months can withdraw Rs 50,000 every week.

This move has relaxed many traders whose businesses has hindered because of a cash crunch after the Centre pulled Rs 500 and Rs 1000 notes out of circulation last Tuesday to stamp out illegal cash from the economy.

Mr.Das said.“Cash supply would be enhanced to branch post offices so that they’re able to give money to account holders.”

After the launch of Rs 500 and Rs 1000 notes, the government increased the daily limit of withdrawal from ATMs from Rs 2000 to Rs 2500 and exchange limit from Rs 4,000 to Rs 4,500.

He also said separate queues will be formed for the disabled and elderly and those who only want to exchange cash.people have till December 30 to deposit their cash and exchange money.

Many areas have seen ATMs quickly run out of cash with traders, housewives and the poor in distress because of a cash crunch.

“The transaction limit can be upped by banks when necessary,” Das
Mr. Das added that micro-ATMs will be introduced to dispense cash through debit and credit cards. Petrol pumps, pharmacies, water, electricity utilities to accept old notes till November 24.

He also said that nearly 180 million transactions have been conducted since Prime Minister Narendra Modi’s announcement last Tuesday.