Post Offices To Dispense Currency In Rural Areas, Govt Sanctions Rs 21,000 Crore For Cooperative Banks

As the people grapple with an acute cash crunch, the government has announced a couple of additional measures, which it says will help in easing the situation.

BCCL

After dodging it for days the government has finally agreed to grant money to cooperative banks, which a majority of the agrarian community depends on.

Economic Affairs Secretary Shaktikanta Das said that banks, NABARD and RBI have been advised to make cash available to district cooperative banks to ensure that farmers have access to funds.

A total of Rs 21,000 crore has been sanctioned by NABARD to district central cooperative bank.

BCCL

Earlier states like Kerala had protested the government's decision not to allow cooperative banks to exchange cash.

With the new currencies yet to reach many of the rural areas, the government said Rs 500 and Rs 2000 notes have been made available in 1.55 lakh post offices across the country.

BCCL

Other measures announced by the government on Wednesday include increasing the e-wallet cash limit to Rs 20,00, no service charge on digital financial transactions using feature phones, and waiving-off service charges on Debit cards.

While insisting that the situation is increasing, Das said so far 82,000 ATMs have been recalibrated and the remaining will be completed in a few days.