Following the cash crunch in the aftermath of the Rs 500 and Rs 1000 note ban, Life Insurance Corporation (LIC) has given a relief to its customers. The public sector insurance giant said that the grace period has been extended for the payment of renewal premium for policyholders. The demonetisation move by PM Narendra Modi-led government has led to a cash crunch even as there are long queues at ATMs, post offices and banks in order to exchange the invalid notes with the new ones. LIC in a statement in Mumbai, reportedly said, “To ensure our policyholders do not experience difficulty in paying renewal premiums, LIC has given certain concessions.” The statement added that the renewal premium of policies where grace period ends between November 9 and November 30 can still be paid before the end of this month without having to pay any penal interest. Even the submission of other requirements has been waived till November 30, which includes health and medical reports declarations if required.
This comes after Prime Minister Narendra Modi, on November 8, demonetised Rs 500 and Rs 1,000 notes in the fight against black money used in counterfeit notes, terror financing and more. Meanwhile, this move has lead to a cash crunch with huge queues around banks and ATMs, apart from dozens of reported deaths. West Bengal CM Mamata Banerjee along with her Delhi counterpart Arvind Kejriwal has recently addressed a huge rally at the Azadpur Mandi in New Delhi seeking immediate withdrawal of the demonetisation drive. During the rally, both the CMs left no stones unturned criticising Narendra Modi and the BJP and their decision to demonetise Rs 500 and Rs 1,000 currencies.
Meanwhile, Economic Affairs secretary Shaktikanta Das on Thursday briefed the media said that for over the counter exchange of Rs 500, Rs 1000 notes, the limit would be reduced from RS 4,500 to Rs 2000 from November 18.He further said that farmers could now withdraw up to Rs 25,000 per week against sanctioned crop loans.