Rs.10000 Advance in the form of Cash Payout to Central Government employees on 23.11.2016
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. This amount will be adjusted in their salary for
November, 2016. It is expected that this decision will ease the pressure
on the banks.
Press Information Bureau
Government of India
Ministry of Finance
17-November-2016 15:52 IST
The
Central Government takes several decisions to facilitate farmers, small
traders, Group ‘C’ Employees of Central Government including equivalent
levels in the Defence and Para Military Forces, Railways and Central
Public Sector Enterprises in the aftermath of the cancellation of the
legal tender character of the old Rs. 500 and Rs. 1000 notes; Also
decides 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/-with
effect from 18th November, 2016.
In the aftermath of the
cancellation of the legal tender character of the old Rs. 500 and Rs.
1000 notes, the Government of India has been receiving several
suggestions including those from the State Governments. The Government
has considered various suggestions and the following decisions relating
to certain operational aspects of this scheme have been taken:
i.
We are now at the beginning of the Rabi season. The farmers need various
inputs for their agricultural activities. While the Government is keen
on promoting payment through the banking or digital system, it is felt
necessary to make some quantum of cash available with farmers to meet
various expenses in connection with agricultural operations. It has,
therefore, been decided 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).
ii. Farmers are currently selling their produce from the
Kharif season in the APMC markets/mandis. The farmers who receive such
payments in their bank accounts through cheque/ RTGS will be permitted
to draw up to Rs. 25000/- per week in cash. These accounts will have to
be KYC compliant. This facility will enable the farmers to meet their
various expenses connected with agriculture. This will also infuse lot
of liquidity into the rural sector.
iii. Traders registered with
APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per
week in cash from their KYC compliant accounts as in the case of
business entities. This will enable these traders to pay wages and
facilitate easy loading, unloading and other activities at the mandis.
iv.
For payment of crop insurance premium, States fix time limits depending
on their local requirements and conditions. Consequently, the last date
for payment expires on different dates. It has now been decided to
extend the last date for payment of crop insurance premium by 15 days.
v.
While encouraging families to incur wedding expenses through cheques or
digital means, it has been decided to permit families celebrating
weddings to draw up to Rs. 2,50,000/- in cash from their own bank
accounts. These accounts have to be necessarily KYC compliant. 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. This
limit of Rs. 2,50,000/- will apply separately to the girl’s family and
the boy’s family. The person drawing such amount has to furnish the PAN
details. Further, a self-declaration will have to be submitted by the
person to the effect that only one person from his/her family is drawing
the amount. It is expected that members of the public will fully
cooperate to ensure that the above guidelines are adhered to. Any misuse
of this facility will invite appropriate action based on the
self-declaration and other details.
vi. 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.
There are also reports of organized groups indulging in such
practices to convert their black money into white. It is now expected
and desirable that people put their old notes into their bank accounts.
However, for convenience of the people who may be on temporary visit
either for work or otherwise, it has been decided to reduce 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/- will take effect
from 18th November, 2016.
vii.
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. This amount will be adjusted in their salary for November, 2016.
It is expected that this decision will ease the pressure on the banks.
Source: PIB
