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.


Related Notification is as follows :-

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 20th November, 2016

S.O. 3490(E).—In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3408(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

I. In the said notification, in paragraph 1, after clause (q), the following clause shall be inserted, namely:—

“(r) for making payments towards purchase of seeds 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, on production of proof of identity:

Provided that for the purposes of this clause, specified bank notes shall mean bank notes of the denominational value of five hundred rupees.”.

[F. No. 10/03/2016-Cy. I]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3408(E) dated the 8th November, 2016 and subsequently amended vide notification numbers S.O. 3416(E) dated the 9th November, 2016, S.O.3429(E) dated the 10th November, 2016, S.O. 3445(E) dated the 11th November, 2016, S.O. 3447(E) dated the 13th November, 2016, S.O. 3448(E) dated the 14th November, 2016, S.O. 3480(E) dated the 17th November, 2016 and S.O. 3489(E) dated the 18th November, 2016.


List of Notifications issued by Ministry of Finance on Demonetisation

Title Notification No. Date
Farmers allowed to purchase seeds using old Rs. 500 notes S.O. 3490(E). 20/11/2016
Notification relaxing cash withdrawal for farmers & for Wedding S.O. 3480(E) 17/11/2016
Notification relaxing cash withdrawal by APMC Traders & Change in Cash Exchange Limit S.O. 3479(E) 17/11/2016
Notification relaxing cash withdrawal for farmers & for Wedding S.O. 3480(E) 17/11/2016
Notification relaxing cash withdrawal by APMC Traders & Change in Cash Exchange Limit S.O. 3479(E) 17/11/2016
No Change in ATM Cash withdrawal Limit from 19.11.2016 S.O. 3449(E) 14/11/2016
Exemptions for acceptance of old Rs. 500 & 1000 notes to continue till 24.11.2016 S.O. 3448(E) 14/11/2016
Exceptions to withdrawal of ₹ 500 & ₹ 1000 Banknotes S.O. 3447(E). 13/11/2016
RBI Increases Daily / Weekly / ATM Cash withdrawal limit S.O. 3446(E) 13/11/2016
Exemptions to cancellation of Rs. 500 & 1000 notes to continue till 14.11.2016 S.O. 3445(E). 11/11/2016
Govt notifies withdrawal of bank notes of ₹ 500 & 1000 S.O. 3418(E) 08/11/2016
Use old 500 & 1000 notes on Toll Plaza, for LPG Cylinder etc. S.O. 3416(E) 09/11/2016
Old demonitised notes can be used to pay Govt Tax, Fees & Penalty S.O. 3429(E). 10/11/2016
Govt notifies Bank note of the denomination of ₹ 2000 S.O. 3409(E) 08/11/2016
Exceptions to withdrawal of ₹ 500 & ₹ 1000 Banknotes S.O. 3408(E) 08/11/2016
Govt notifies withdrawal of bank notes of ₹ 500 & 1000 S.O. 3407(E) 08/11/2016

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One response to “Farmers allowed to purchase seeds using old Rs. 500 notes”

  1. Ashok Bajaj says:

    Will you please clerify , where farmers do not loan account / crop loan account/ and now in critical position for sowing the Rabi crop , who previously draws from their on saving account/agricultural account or from commission agent. It appears to be injustice to the farmer who have no loan/crop loan account or is not enjoying any limit for agricultural purposes. This facility should be given to draw amount from their deposits.

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