Govt allows farmers to purchase seeds with old notes

21 November, New Delhi

Government has decided to allow farmers to purchase seeds with old denomination bank notes of 500 rupees from Centres, units and other outlets belonging to the Central or State Governments on production of proof of identity. The decision has been taken to further support farmers for the current Rabi crop.

An official release said, the provision is in addition to the decision taken earlier for making cash available with the farmers by permitting them to draw up to 25,000 rupees per week from their accounts.

Finance Minister Arun Jaitley has asked banks to make available funds to farmers for rabi season through cooperative banks. Mr Jaitley told this to reporters after holding a high level meeting with RBI, NABARD, public sectors banks and secretaries in the finance Ministry in New Delhi today.

The Finance Minister discussed the shortage of funds being faced by farmers during the current Rabi sowing season. He said, the required funds will be provided to the farmers by Cooperative banks through associated banks.