From relief for farmers to waiving service charges on e-transactions, here's how Modi Govt fighting cash rush
Modi Government Took Many New Moves To Ease The Pressure On Consumers And Farmers
In the eye of the storm due to the problems faced by the people following the demonetisation exercise, the Modi government has announced a slew of measures to ease the pressure on consumers and farmers. From allowing farmers to buy seeds using old notes to now waiving off the service charges on digital financial transactions using features phones till December 31st, the government has taken many steps to ease cash-crunch.
Here are the top decisions that the government has announced so far to counter the currency overhaul woes.
Announcements for farmers
- On Monday the RBI allowed farmers to buy seeds using old Rs 500 currency notes
- The government has allowed the state-run lender NABARD to disburse Rs 21,000 crore to farmers during rabi sowing season
- Small farmers can withdraw 40% of their credit from cooperative banks
- NABARD and RBI have been advised to ensure adequate cash supply to central cooperative banks
- TRAI has reduced USSD charges from Rs. 1.50 to 50 paise for feature phones (not smartphones) - as feature phones comprise over 65% of all phones
- Micro-ATMs, bank correspondents have been made available in rural areas
For bank borrowers
- To ease problems of people who took loans from banks, the RBI has provided additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.
- Withdrawal limit for holders of current/overdraft/cash credit account has been raised upto Rs 50,000 per week
To boost e-transactions
- Service charges have been waived on digital financial transactions using features phones till December 31st.
- Railways has waived service charges on e-tickets booked till December 31
- RBI has also announced relaxation on E-wallets, enhancing the limit from Rs 10,ooo to Rs 20,000 in respect of individuals
- As far as RUPAY cards are concerned, all charges have been waived till December 31
- The government have also promoted digital transactions at toll plazas. The ministry of road transport have told contractors to include ETC complaint Radio Frequency Identification (RFID) facility in all new cars
- RBI raised withdrawal limit upto Rs 2.5 lakh for wedding expenditures
- RBI has relaxed one of several conditions for withdrawal of Rs 2.5 lakh from their own accounts by making declaration for payments beyond Rs 10,000 only
- The RBI also doubled the limit to Rs 20,000 for semi-close pre-paid instruments with a view to meeting the transnational needs of the public through digital mean
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First Published : 23 Nov 2016, 01:44:00 PM