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Demonetisation: Govt relaxes rules, allows farmers to use Rs 500 notes to buy seeds

Govt relaxes rules as farmers, daily wage earners have been among the worst hit by the Centre's demonetisation step to curb black money

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BS Web Team New Delhi
The government on Monday decided to relax the rules to allow farmers across India to use demonetised Rs 500 banknotes to buy seeds for rabi-seasonsowing. In a notice issued on Monday, the Ministry of Finance said farmers could now purchase seeds from government agencies for the current rabi crop with the banned Rs 500 notes. 

Farmers and daily wage earners across the country were hit badly by the Centre's move to demonetise old currency notes of Rs 500 and Rs 1,000. Prime Minister Narendra Modi had on November 8 announced this step in a late-evening address to the nation.

Here is the full statement issued by the finance ministry on Monday:

"To  further support farmers for the current Rabi crop, the Government has  decided to allow farmers to purchase seeds with the old high  denomination bank notes of Rs.500 from the Centres, 
 Units or  Outlets belonging to the Central or State Governments, PSUs, National or  State Seeds Corporations, Central or State Agricultural Universities  and the ICAR, on production of proof of identity.  

In  order to further support farmers for the current Rabi crop, the  Government has decided to allow farmers to purchase seeds with the old  high denomination bank notes of Rs.500 from the Centres, Units or  Outlets belonging to the Central or State Governments, Public Sector  Undertakings, National or State Seeds Corporations, Central or State  Agricultural Universities and the Indian Council of Agricultural  Research (ICAR), on production of proof of identity.  

This is in addition to the decision taken earlier for making cash  available with the farmers by permitting them to draw up to Rs.25,000  per week from their KYC compliant accounts subject to the normal loan  limits and conditions apart from the other facilities announced on  17.11.2016.  The Government is committed to ensure that the farmers are suitably facilitated during the Rabi season.

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First Published: Nov 21 2016 | 2:03 PM IST

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