Demonetisation: Key measures taken by RBI to ease the situation

The Reserve Bank of India (RBI) took some key measures to ease the inconvenience faced by the people due to cash crunch resulting out of demonetisation

New Delhi, Nov 22: The Reserve Bank of India (RBI) took some key measures to ease the inconvenience faced by the people due to cash crunch resulting out of demonetisation of Rs.500 and Rs.1,000 notes.

Here are the highlights.

1. The RBI on Monday relaxed the repayment of housing, car, farm and other loans by giving an extension of 60 days. This is, however, valid for loans only upto Rs. 1 crore and not beyond that.

2. The RBI said overdraft and current account holders would be allowed to draw upto Rs 50,000 in cash, in a week. This is, however, not applicable for personal overdraft accounts.

3. In a major relief to farmers, the central bank allowed them to use old Rs. 500 and Rs. 1000 notes to purchase seeds from the centers, units or outlets belonging to the Centre or state governments, including State Agricultural Universities and the Indian Council of Agricultural Research (ICAR), on production of proof of identity.

4. The Central bank has also relaxed withdrawal limits for families where wedding is due. Such families can draw upto Rs 2.5 lakh provided that the money has been deposited in the bank before November 8. Money can be withdrawn only by the bride, groom or their parents.

5. The RBI has also rubbished the rumours that older Rs.10 coins would not be valid, saying that both older and newer Rs 10 coins were legal tenders.

(With agency inputs)