Currency chaos of India: Cash exchange limit cut to Rs 2000 only

Long queue for currency in India.

After failing to provide ample cash to citizens of India, the Government of India on Thursday decided to reduce the limit of exchange of old Rs 500/- and Rs 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. The decision sent shockwaves across the country, the citizens are already battling with crunch of money. 

The decision also proving that the GOI was fully prepared for the chaos which is occurring across the country. In Rural India, few number of banking set-up is available and queue of thousands of Indian is visible after 10 days of cancellation of legal tender character of old notes. 

Rabi season begin in the rural India and farmers need various inputs for their agricultural activities. On Thursday, the GOI announced that farmers would be permitted to draw upto Rs. 25000/- per week in cash from their KYC compliant accounts only. These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC). 

Agriculture produced in India is going waste as there are not purchaser for it. Farmers are currently selling their produce from the Kharif season in the APMC markets/mandis. However, crunch of currency notes affecting it badly. 

Another immature decision of the GOI is Traders registered with APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per week in cash from their bank accounts. A trader said that the any trader needs for five to 10 lakh ruppes everyday for business and the GOI is giving allowing only Rs 50,000 per week. 

Permit families celebrating weddings to draw up to Rs. 2,50,000/- in cash from their own bank accounts. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. At present, over the counter exchange of old Rs. 500/- and Rs. 1000/- notes is limited up to maximum of Rs. 4500/- per person. Reports have been received that the same persons are going back to the counter again and again, thereby cornering the facility and depriving many other people from exchanging old notes. Hence, the GOI reduced this limit of exchange of old Rs. 500/- and Rs. 1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. This facility will be available only once per person. The reduced limit of Rs. 2000/-. 

Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs. 10,000/- in cash.