From wallets to weddings: RBI moves to ease cash crunch
In a relief to small businesses and to the common man, the Reserve Bank of India (RBI) and the government on Tuesday came up with a new set of rules to ease cash crunch in the economic system.business Updated: Nov 23, 2016 10:04 IST
In a relief to small businesses and to the common man, the Reserve Bank of India (RBI) and the government on Tuesday came up with a new set of rules to ease cash crunch in the economic system.
Customers can now use Rs 20,000 instead of the earlier Rs 10,000 to make transactions through prepaid wallets and cards, the central bank said in a notification. Also, small merchants will be allowed to transfer Rs 50,000 to their own bank accounts instead of Rs 25,000 earlier. Both rules are applicable from November 22 to December 30 this year.
The RBI also eased rules for cash withdrawal for families who have weddings at home. Any cash payment of less than Rs 10,000 to people without bank account will no longer need a declaration from the receiver. The central bank had earlier said that all cash transactions for wedding purposes to people without bank accounts will need a disclosure.
Besides, the central bank relaxed rules on loans to farmers, asking the National Bank for Agriculture and Rural Development to disburse up to Rs 23,000 crore to district cooperative banks for crop loans. The recent demonetisation scheme has badly hit farmers, leaving them without cash just ahead of sowing winter crops. The central bank also asked banks to ensure that district cooperative banks and regional rural banks, which provide loans to several farmers’ cooperatives, get a sufficient amount of cash.
Also, a senior railway official said that beginning Wednesday till December 31, service tax will not be levied on tickets booked through the IRCTC website. Service taxes of Rs 20 and Rs 40 are levied on sleeper and AC classes for booking tickets through IRCTC.