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Demonetisation: Long queues continue at ATMs, govt. tries to ease farmers' woes

 
ATMs out of cash, residents face tough time making ends meet
The Opposition continued to block proceedings in both Houses of Parliament for the fourth day today, demanding a discussion under a rule that entails voting, even as long queues continued at ATMs, 13 days after the Government suddenly demonetized Rs. 1000 and Rs. 500 notes on November 8 as part of its fight against black money.
 
The Government, meanwhile, tried to address farmers' woes by allowing them to purchase seeds with the old Rs. 500 notes from Central or State Government outlets and agriculture universities as part of efforts to support them for the current Rabi crop.
 
An official press release said this was in addition to the decision taken earlier for making cash available with the farmers by permitting them to draw up to Rs.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," it added.
 
Farmers can now purchase seeds 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.
 
In Parliament, a united Opposition led by the Congress and Trinamool Congress raised their level of attacks on the Government on the after-effects of demonetization, leading to adjournment of both Houses several times.  In the Lok Sabha, Congress and other parties insisted for a debate under rule 56 which provides for voting and suspension of all other business by allowing adjournment motions. Parliamentary Affairs Minister Ananth Kumar said the government was prepared for any discussion but under rule 193 that did not entail voting or passage of any resolution. 
 
Finance Minister Arun Jaitley told the Rajya Sabha on Monday that the Opposition did not appear to be ready for any debate but was merely inventing newer techniques to disrupt the proceedings of the House. As the House assembled , Congress wanted to raise what it termed the alleged illegality in the introduction of new Rs 2,000 notes.
 
The Opposition was also unrelenting in its demand that Prime Minister Narendra Modi reply to the discussion in Parliament and address the concerns of the members on the issue that had inconvenienced the general public and small merchants. If the Prime Minister can speak at rallies, why not in Parliament, the opposition asked. 
 
With commercial banks opening for the week after a day’s break for the first time since demonetization, people turned up in large numbers to  exchange old invalid notes and withdraw cash. Even after two weeks since demonetization, people still had to sweat it out in long queues for hours as most ATM machines either ran out of cash or were yet to be recalibrated for the new notes.
 
Media reports from different parts of the country suggested that people were frustrated with banks running out of cash, leading sometimes to arguments with the staff. Despite the Government's concession to families hosting weddings to withdraw about Rs 2.50 lakh, such people could not withdraw the money as the banks turned them away for lack of  operational guidelines from the Reserve Bank of India (RBI) in this regard.
 
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To prevent exploitation of the situation by currency mules, depriving others of a chance to withdraw money, banks at many places have started using indelible ink to prevent them from queueing up again to exchange defunct notes.
 
India’s rural economy depends mainly on cash transactions, and a large percentage of the rural population is yet to be connected with the formal banking system. Glitches in the last mile delivery of new currency notes has left rural India virtually scrambling for cash. Farmers and rural folk have also suffered because because the RBI did not allow gramin banks or local cooperative banks to exchange or deposit the defunct notes by the farmers who had accounts in them. 
 
Taking into view the sufferings of the rural folk, the government has issued orders to ease the burden on the cash strapped agrarian economy. Apart from announcing the relaxation in buying seeds, the government had on Thursday increased the withdrawal limit for farmers to Rs. 25,000 apart from allowing them a 15-day grace to pay their crop insurance premia. 
 
The state governments have mobilized their efforts on a war-footing to ease the pressure on the agro economy, ahead of the sowing season. While the Uttar Pradesh government has asked the district magistrates to ensure cash availability in their respective regions, Punjab government decided to provide fertilizers and other farm inputs in kind to farmers for sowing of the Rabi crops, media reports trickling from different states suggest. 
 
The Himachal Pradesh government , according to reports , deployed helicopters for dispatching Rs 2,000, Rs 100, Rs 50 and other small denomination notes to far-flung, remote and tribal areas of the state to ensure adequate supply of valid currency.  
 
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