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Corporates should be spared from cash withdrawal limit: Assocham

Assocham said there is no scope of misuse as transactions of corporate firms are properly recorded and audited

Press Trust of India  |  New Delhi 

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu (Photo: Reuters)
A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu (Photo: Reuters)

Industries should be spared from withdrawal limit as the Rs 50,000 cap is too low and needs to be enhanced, industry body said.

Urging the government to consider lifting the withdrawal limit for corporate firms, said there is no scope of misuse as these transactions are properly recorded and audited.

Besides, they can be subject to scrutiny by any authority including departments, it said.

"The withdrawal limit of Rs 50,000 per week from current account is very less for industry. Therefore, it needs to be enhanced and the industry should not be subject to any limit because withdrawn by industry is duly recorded, audited and scrutinised by the government authorities such as Department," said in a letter to Finance Minister Arun Jaitley.

The industry lobby group has also requested the government to restructure bank loans repayment schedule for a large number of industries, especially the small scale sector, which has been hit hard by the ban on high value notes last month.

also fears that dependent on banks and financial institutions for finance would be hit by the limited availability.

In such a situation the borrowers, particularly the private limited and MSME sector, would default in loan repayments/interest payments, it said.

"Under this state of affair, the industry would require rescheduling of payments of loans as well as additional financial support to meet the liquidity requirement without any penal action," said.

It also urged the Government to consider issuing cards to retail customers and small traders so that even a person without a bank account can carry transactions when is scant.

"Speedy distribution of is necessary so that people have confidence that sufficient is available in the system and there is no need of holding extra in hand."

Day-to-day expenses like maintenance and repair, staff welfare, consumable items, loading and unloading are done mainly on and mostly paid to people in unorganised sector who do not accept cheques, it said adding, till the economy largely converts into a cashless one, the industry will face problem on a daily basis.

has also suggested that network of banks in rural areas should be spread so that every village has bank and ATMs.

First Published: Fri, December 02 2016. 15:00 IST