You are here: Home » Economy & Policy » News » Demonetisation
Business Standard

Swipe for Rs 2,000 at petrol pumps, families with weddings can get Rs 2.5 lakh

The facility will be available at 2,500 petrol pumps


BS Web Team  |  New Delhi 

A gas pump is seen hanging from the ceiling at a petrol station in Seoul. Photo: Reuters
A gas pump is seen hanging from the ceiling at a petrol station in Seoul. Photo: Reuters

In a bid to ease cash crunch, the government allowed dispensing cash of up to Rs 2,000 through debit card swipe at select petrol pumps. It also enabled farmers to withdraw up to Rs 25,000 per week from their Know your customer (KYC)-compliant accounts.

Here are the key developments:

1. Get Rs 2,000 at petrol pumps: The facility will be available at 2,500 petrol pumps. "It has been decided that an amount up to Rs 2000 per day per person in cash can be dispensed against swiping of the debit card at select petrol pumps where POS machines of SBI are already available," an official said. POS machines are the machines that are generally used for debit or credit card transactions.

2. Families with weddings can withdraw Rs 2.5 lakh: Families with weddings can withdraw Rs 2.5 lakh. They will have to sign a self-declaration document saying the money was drawn against only one account – that of the father, mother, groom or the bride.

3. Farmers can withdraw up to Rs 25,000 per week from their KYC-compliant accounts; besides, Kisan Credit Cards will be subject to the same new limit. Stating that the government would ensure that the farmers didn't suffer, the finance minister said the Centre had allowed the agricultural produce market committee (APMC)-registered traders to withdraw Rs 50,000 per week.

4. Category C employees can withdraw Rs 10,000 in cash against November salaries: The Centre also permitted central government employees up to Group C categories to withdraw Rs 10,000 in cash against their November salaries.

5. Limit for exchange of notes set at Rs 2,000: For over-the-counter exchange of old Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 has been reduced to Rs 2,000 from November 18.

6. 22,000 ATMs are getting recalibrated daily: Finance Minister Arun Jaitley said the move to demonetise the high-value notes was "very well planned", and added that the rush at bank branches was "significantly" coming down, and that 22,000 ATMs were getting recalibrated daily to dispense Rs 100, and new 500 and 2,000 rupee notes.

7. Earlier exchange limit of Rs 4,500 was being misused: Jaitley said the earlier currency exchange limit of Rs 4,500 was being "misused". Following complaints that people were being hired to convert black money into white -- a reason for long queues outside bank brackes -- the government decided to start using indelible ink and reduced the limit for currency exchange to Rs 2,000 per person till December 30.

8. Awareness programme: Oil companies will launch an awareness campaign for consumers to help them shift to cashless transactions -- credit/debit cards, mobile wallets and loyalty programmes for the purchase of fuel, and reduce their dependence on cash.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 18 2016. 09:32 IST