Economy

Cash Exchange Limit Reduced From Rs 4,500 to Rs 2,000

People queue before ATMs. Credit: Reuters

People queue before ATMs. Credit: Reuters

A week after the government’s currency ban, new regulations were announced on November 17 to deal with the chaos that the cash shortage has brought on.

The Economic Times reported that more curbs were introduced, with the limit for bank exchange for old Rs 500 and Rs 1000 notes being reduced from Rs 4,500 to Rs 2,000, effective from November 18. The curb comes four days after the counter exchange limit was raised from Rs 4,000 to Rs 4,500 to coincide with the launch of the new Rs 500 rupee note, as NDTV had reported.

According to an NDTV report today, economic affairs secretary Shaktikanta Das believes that reducing the limit will help more people exchange the demonetised Rs 500 and Rs 1000 notes.

In addition, withdrawal limits have been raised for farmers who have crop loans. They can withdraw upto Rs 25,000 a week, against their loans. The Economic Times also reported Das saying that time limit to pay crop insurance premiums for farmers has also been extended by 15 days.

Furthermore, to finance weddings, families have been allowed a one-time withdrawal of Rs 2.5 lakh from a single account against a self-declaration.