Demonetisation: RBI relaxes withdrawal norms for farmers, traders

MUMBAI: Ahead Rabi crop season farmers may now breathe easy as the Reserve Bank of India has relaxed norms for withdrawing money from banks, which was capped two weeks ago in the wake of the government’s demonetisation move.

“Farmers may be allowed to draw upto Rs 25,000/- per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts subject to their accounts being compliant with the extant KYC norms,” the central bank said in a notification on Monday.

Farmers are now busy preparing for the Rabi season as the seed sowing will require money at a time when such limits are in place. Without funds, cultivators will be constrained to buy seeds, fertilisers and diesel for the next crop.

Common people can withdraw up to Rs 24,000 per week, but the central bank has now taken cognizance of some real life problems like marriage or farming. Hence, it has relaxed a few norms.

In similar line, RBI has expanded the window of withdrawals for small traders in mandis, who deal in farmers.

“At present all current account holders are allowed to withdraw, in cash, Rs 50,000/- in a week from their current account subject to certain terms and conditions and the same is being now extended to the traders registered with APMC markets/mandis,” RBI said.

Such traders will be permitted to draw up to Rs 50,000/- from their current accounts provided that such accounts are compliant with the extant KYC norms and are operational for the last three months or more.