Govt. allowed central staff to draw upto Rs 10 thousand in cash as advance salary

The government has allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks, - Economic Affairs Secretary Shaktikanta Das A number of measures also announced such as, Farmers may withdraw cash upto Rs 50 thousand.
New Delhi, Nov 17 (PTI) With cash crunch following demonetisation impacting agri sector, the government today eased guidelines for farmers by allowing them to withdraw up to Rs 50,000 cash per week from bank.

Besides, it has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week.

This steps will ensure that sowing takes place adequately in the Rabi season and enough cash is available to the farmers to buy fertiliser, seeds and other inputs, Economic Affairs Secretary Shaktikanta Das told reporters here.

"The government has decided to permit the farmers to draw up to Rs 25,000 per week against the crop loan sanctioned and credited to their accounts, subject to the limits...and this will also apply to Kisan Credit Cards," he said.

These accounts have to be in the name of the concerned farmers, the accounts will have to be KYC compliant, Das said.

Besides, if the farmers receive payments either by way of cheques or RTGS into the bank accounts, they can withdraw up to Rs 25,000 per week, Das said.

Similarly, the registered traders with the Agricultural Produce Marketing Committee (APMC) markets also will be permitted to draw Rs 50,000 per week to meet various cash requirements like payment of wages to workers and other sundry expenses.



"So, this will facilitate smooth procurement process and help farmers to sell their produce without any difficulty," Das said.

The government has also allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks," Das said.

Following the demonetisation of 500 and 1,000 rupee notes on November 8 by Prime Minister Narendra Modi, the government allowed withdrawal of up to Rs 24,000 per week per person through cheque and Rs 2,500 from ATMs

Exchange of Cash limit reduced to Rs 2,000 from tomorrow (17.11.2016)

NEW DELHI: The government today revised certain guidelines for the withdrawal of cash, limiting counter exchange of old Rs 500, Rs 1,000 notes from Rs 4,500 to Rs 2000 starting from tomorrow. 

Government also allowed farmers to draw money from banks against loans sanctioned to them to buy seeds and fertilisers in the ongoing sowing season, as it responds to criticism against the move to cancel high-value rupee bills. 

Farmers will be able to withdraw up to 25,000 rupees per week against their crop loans, Economic Affairs Secretary Shaktikanta Das told reporters, adding the time limit to pay crop insurance premiums has also been extended by 15 days. 

Millions of Indian farmers, however, have no bank accounts and depend on local moneylenders to fund sowing. 

"One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding," said Das. 

Key takeaways from the conference: 

1. Government has decided that time limit in crop insurance premium cases will be extended by 15 days. 
2. Government decides that farmers can withdraw Rs 25000 per week from a/c where farmers receive either by cheque or which is credited by RTGS. 
3. For wedding ceremonies, upto Rs 2.5 lakh can be withdrawn from the bank account which is KYC compliant. 
4. For over the counter exchange of old Rs 500/1000 notes, with effect from Nov 18, Rs 4,500 limit will be reduced to Rs 2000 from tomorrow. 
5. One member of the family, be it father or mother can withdraw upto Rs 2.5 lakhs for a wedding. 
6. Task Force held a meeting and a road map has been formed to re-calibrate all ATMs; sure that it will be done soon. 
7. Central government employees up to Group 'C' can draw salary advance up to Rs 10,000 in cash that'll be adjusted against their November salaries. 
8. Kisan Credit Cards will be subject to same new limit. 
9. There is enough cash available with Govt, no cash crunch. 
10. Currency printing presses operating at over 100 per cent capacity. 
11. Mandi traders can withdraw upto Rs 50,000 per week.

Don't need ID copies to exchange old currency notes, says Reserve Bank of India

Don't need ID copies to exchange old currency notes, says Reserve Bank of India 

NEW DELHI: The Reserve Bank of India and head offices of most commercial banks have not asked banks to collect photocopies of customers' identities for exchange of old currency notes. 

In an email to TOI , RBI said that its guidelines only require customers to present and show valid proof, the photocopies are not required. A senior official of the State Bank of India confirmed the same: "The bank only needs details and numbers on the requisition slip which the teller will match with entries in a document," he said. 

Yet most bank branches, including several of SBI , have been insisting on photocopies, which has added to lengthening of queues at the branches. Some branches have offered to copy the document in the branch when customers turn up with only the original copy of their identity. 

A few banks are having a dual approach. "While other banks might ask customers, coming to exchange money to submit photocopies, we are not doing so. For our bank customers we already have their KYC details, so there is no point in asking them for identification or proof again," said A Vidyasagar, COO, Lakshmi Vilas Bank. "For non-bank customers we do get photocopies, but we ask them to sign their names with date, purpose and bank branch," he added. 

The gazette notification withdrawing the old high denomination notes from circulation issued on November 8 had said that people can exchange notes at any bank by submitting a requisition slip and proof of identity. 


Source : TOI

Banks, Post offices to report cash deposits of over Rs 2.5 lakh to ITD

Banks, Post offices to report cash deposits of over Rs 2.5 lakh to ITD

The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window provided to tender the scrapped 500 and 1000 rupee notes. 

As per a notification issued today, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period November 9, to December 30, 2016. 

These entities will also have to report cash deposits during the period aggregating to Rs 12.50 lakh or more, in one or more current account of a person. 

The Finance Ministry has notified the amended Rule for filing of Annual Information Return (AIR) report by banking company, cooperative bank and post offices on account of aggregate cash deposits in one or more current account of a person. 

Banks and post offices now have to file a statement of financial transaction in respect of these transactions on or before January 31, 2017, the notification said. 

Earlier, they were required to report to the I-T Department only when cash deposits in an account exceeded Rs 10 lakh in one full year. 

In view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the Revenue Department has issued fresh set of instructions. 

In a major assault on black money, counterfeit notes and terror financing, Prime Minister Narendra Modi had on November 8 announced demonetisation of high value currency notes of Rs 1000/500 and asked the public to deposit them in banks by December 30. 

Since then, seemingly unending queues of people trying to deposit and exchange their scrapped currency notes are being witnesses at banks and post offices. 

Tax department officers are of the view that the 50-day window provided to people to deposit or exchange notes should not be misused and hence the need to keep a tab on such high value deposits. 

Those depositing large amounts of unaccounted money will have to face the consequences under tax laws, which provide for a 30 per cent tax, 12 per cent interest and a 200 per cent penalty. 

"CBDT has brought two-fold amendment casting a reporting responsibility on the taxpayer as well as the bank, thereby ensuring that bank doesn't let go off the non-compliant taxpayers," Nangia & Co Managing Partner Rakesh Nangia said. 

Source : The Economic Times

Demonetisation: Now, PAN required if combined cash deposits exceed Rs 2.5 lakh till December 30

Demonetisation: Now, PAN required if combined cash deposits exceed Rs 2.5 lakh till December 30

The government has announced a new rule to prevent people from making multiple cash deposits in their bank accounts without quoting the PAN. Till now, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision. But a circular issued on Tuesday says deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in multiple batches of less than Rs 50,000 each and escape mentioning the PAN. 

The CBDT has also made changes in the (AIR) Annual Information Return rules. Till now, banks and post office branches were supposed to report to the tax department if an individual made cash deposits of Rs 10 lakh in a year. During the period 9 November to 30 December, this limit has been lowered to Rs 2.5 lakh.If the cash deposits exceed this limit, the bank or post office will automatically report it to the tax department. For current accounts, the threshold limit for cash deposits between 9 November and 30 December will be Rs 12.5 lakh. 

The rule applies to all bank accounts of the individual, though it is not clear how banks will be able to capture information of cash deposited in other bank accounts. 

Source : The Economic Times

Commemorative Postage Stamp released on Children's Day

Department has released two two beautiful commemorative postage stamps, miniature sheet and first day cover on the occasion of Children's Day on 14th November 2016. Stamps are selected from the best drawings prepared by children during the competition held in this year. The theme of the drawing was given 'PICNIC'. 

Normalcy restored in Dhenkanal Division after the Superintendent was relieved

First of all, we would like to sincerely congratulate the unity shown by the staff members of Dhenkanal Division irrespective of wing and cadre against their arrogant officiating superintendent  who had been continuously harassing and misbehaving the staff members including the women employees since the vary day of his posting.

The determination registered by each militant member of the Division continuously for more than 24 hours against the inhumane activities of the Superintendent is highly praise worthy.  All the 54 post offices including 2 H Os remained non-functional on 16.12.2016.

In the first hour on 16.11.2016, Com. R C Mishra, Circle Secretary and Com. B Samal, Vice-President, AIPEU, Group-C, Odisha Circle  discussed the matter with Sri  Ashok Rath,  Asst. Director (SB) and Dr. S K Kamila, Chief PMG in Circle Office  and intimated the whole position with demand to immediately transfer Sri B M Das Mohapatra, Supdt., Dhenkanal Division so that the agitation may cease.  In addition we also demanded that since Sri Das Mohapatra lacks managerial capability to work for the public which resulted in paralysation of the Division  at a time when the Department of Posts is fully involved in the demonetization process and members of public are put into untold sufferings for exchange and deposit of WOS banknotes, he should not be posted anymore as Divisional head.

The Chief PMG told that he had entrusted the work to the Regional PMG, Samablpur for taking necessary action and assured that all feasible measures will be taken after conducting an impartial inquiry. We requested the Chief PMG to ask the PMG to move to the spot for immediate solution. We also tried to contact the PMG, Sambalpur, whose mobile was found switched off.  Later we came to know that he was busy in the District Level Philatelic Exhibition organized by Keonjhar Division. As informed by the Chief PMG, Sri Das Mohapatra begged apology to the agitated mass without any result.

We failed to realize the stand of the administration that when the Divisional as a whole has been paralyzed with closure of all the post offices and all staff members of the Division are on agitation since yesterday, how it was not felt necessary by the administration to move to the spot and speak to the agitated employees.

However, Com. R C Mishra, Circle Secretary and Com. B Samal, Vice-President, AIPEU, Group-C, Odisha Circle  proceeded to the spot accompanied with  Com. Pramod Kumar Pattnaik and Lingaraj Sahoo, President and Vice-President of Bhubaneswar Division and Com. Bishnu Prasad Das, Circle Financial Secretary.

The situation was quite tensed with agitated employees of all the entire Division, police and members of public. We interacted many employees. As experienced,  not a single member is satisfied with the nature, body-language, work-culture and above all with mind-set  of Sri Das Mohapatra. A Britishraj is almost going on. As opined, Sri Das Mohapatra even never speaks politely to his fellow workers. “Do you know me?’, “I will see you.”, “I will charge-sheet you.” are some of the common dialogues he uses time and again. Full dictatorship ! we were surprised how these employees are tolerating such misbehaviour till date. The present situation was nothing but the outcome of supressed anger of the staff members. The whole situation was intimated to Sri  Ashok Rath,  Asst. Director (SB) and Dr. S K Kamila, Chief PMG in Circle Office over telephone along with the determination of the employees to continue with the dharana until Sri Das Mohapatra is relieved from Dhenkanal Division. A joint memorandum in this regard was also forwarded to the Chief PMG, Odisha Circle by the Divisional leadership of NFPE and FNPO.

Realizing the public inconvenience for exchange of WOS  banknotes, the leadership of Dhenkanal Division agreed to open one exchange counter in  Dhenkanal HO on the appeal of District administration.

At last, with the kind intervention of the Chief PMG, Odisha Circle, Sri Das Mohapatra was relieved handing over charge to one ASPOs. The Chief PMG assured our Circle Secretary over phone that said Sri Das Mohapatra will not be posted back again to Dhenkanal Division and the placement committee will decide his subsequent posting.

Thus, after getting the above assurance from the Chief PMG, Odisha Circle through our Circle Secretary and considering the gravity of current situation due to demonetization, it was decided by the Divisional leadership of Dhenkanal Division to bring a stop to the agitation after Sri Das Mohapatra was relieved with heavy police escort.

As known, a press statement was released later in late night and the offices in Dhenakanl Division are functioning as usual today (17.11.2016)