RBI on Tuesday relaxed one of several conditions for withdrawal of Rs 2.5 lakh from their own accounts by making declaration for payments beyond Rs 10,000 only.
Earlier, the drawee had to declare all payments he had to make out of the Rs 2.5 lakh withdrawal from the account.
Also, RBI asked banks to ensure adequate funds are provided to rural cooperative banks for disbursal to farmers so that they can have enough valid notes for purchase of seeds, fertiliser and other inputs during the ongoing rabi season.
Parallelly, RBI doubled the limit to Rs 20,000 for semi-close pre-paid instruments with a view to meeting the transactional needs of the public through digital means.
“A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account, where the amount proposed to be paid is Rs 10,000 or more. The list should indicate the purpose for which the proposed payments are being made,” RBI said in a notification.
“It is estimated that about Rs 35,000 crore would be required by DCCBs (District Co-operative Banks) for sanction and disbursement of crop loans to farmers at the rate of Rs 10,000 crore per week,” an RBI notification said.
National Bank for Agriculture and Rural Development (Nabard) will be utilising its own cash credit limits up to about Rs 23,000 crore to enable the DCCBs to disburse the required crop loans to Primary Agricultural Credit Society (PACS) and farmers, it said.