Relaxation in withdrawal of Cash from Bank deposit Accounts

Relaxation in withdrawal of Cash from Bank deposit Accounts

MUMBAI :The Reserve Bank on India on Monday eased withdrawal limits for those who are depositing valid currency in their bank accounts to lure fence sitters to deposit their collections. Withdrawal limits for other customers remains capped at Rs 24000 per week. 

The regulator said it had been brought to its notice that certain depositors were hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts. 

"It has been decided, on careful consideration, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits; preferably, available higher denominations bank notes of ` 2000 and ` 500 are to be issued for such withdrawals," RBI said in a notification 

Courtesy:EconomicTimes

RBI/2016-17/163

DCM.No.1437/10.27.00/2016-17

November 28, 2016

The Chairman / Managing Director/ Chief Executive Officer,

Public Sector Banks/ Private Sector Banks / Foreign Banks / 

Regional Rural Banks / Urban Cooperative Banks/

State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,

Withdrawal of cash from bank deposit accounts - Relaxation

It has been reported that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.

2. As it is impeding active circulation of currency notes, it has been decided, on careful consideration, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits; preferably, available higher denominations bank notes of ₹ 2000 and ₹ 500 are to be issued for such withdrawals.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

Source:RBI