Press Information Bureau

Government of India

Ministry of Finance

21-November-2016 13:32 IST

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 ₹ 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 ₹ 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.

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Acceptance of old banknotes for seed purchases at government and agricultural outlets allowed for farmers upon identity verification. Government policy permits farmers to use old high denomination banknotes to purchase seeds from designated public outlets including government units, public sector undertakings, seed corporations and agricultural universities, subject to production of proof of identity; this measure complements prior liquidity measures allowing cash withdrawals from KYC compliant accounts within normal limits and conditions.