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Showing posts with label Cash withdrawal. Show all posts
Showing posts with label Cash withdrawal. Show all posts

Thursday, 14 September 2017

07:57

State Bank OF India decisions on transaction charges, minimum balance will hurt customers: RBI staff body

State Bank OF India decisions on transaction charges, minimum balance will hurt customers: RBI staff body
THIRUVANANTHAPURAM, 
SEPTEMBER 13:  
The All India Reserve Bank Employees Association (AIRBEA) has requested the Reserve Bank Governor to invoke Section 35A of the Banking Regulation Act, 1949, to get State Bank of India (SBI) to mend its ways with crores of its customers.

The Act empowers the apex bank to give directions “to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors,” according to Samir Ghosh, general secretary, AIRBEA.
Recent decisions
Ghosh invited the Governor’s attention to recent business decisions of the country’s largest bank with a network of about 24,000 branches and more than 40 crore customers, of which 31 crore are savings a/c account holders.
  • One of these decisions permitted the latter to deposit and withdraw cash only three times a month, free of charge. Beyond that, every transaction would invite a charge of ₹50 plus service tax.
  • Secondly, failure to maintain a minimum balance amount in any account on a quarterly basis will attract a fine. For accounts held in metro branches, the balance required is ₹5,000.

If the amount falls below ₹3,750 (or 75 percent), the penalty is ₹100 plus service tax.
The charges and minimum account balance vary across metro, urban, semi-urban and rural areas.
Ghosh said that there are a large number of pension account holders in SBI, who draw meagre amounts. Maintaining a minimum balance as stipulated by SBI may not be possible for most.
A good number of students have also opened their accounts in SBI branches as do millions of recipients of various welfare and subsidy schemes.
SBI is reported to have confiscated about ₹235 crore from account holders during the first quarter, he said.

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Wednesday, 14 June 2017

07:38

State Bank Of India:Revised Charges For the Various type of Transactions

State Bank Of India:Revised Charges For the Various type of Transactions

SBI Free ATM Withdrawal Limits, Debit Card And Cheque Book Charges
India's biggest bank SBI has clarified that customers of its mobile wallet State Bank Buddy will be charged Rs. 25 for every ATM withdrawal.

State Bank of India or SBI has revised its charges on various services like ATM withdrawal, cash transactions, issuance of cheque books, exchange of soiled notes and online transfer of funds through Immediate Payment Service or IMPS with effect from June 1. India's biggest bank has clarified that customers of its mobile wallet State Bank Buddy will be charged Rs. 25 for every ATM withdrawal. SBI's app - State Bank Buddy - enables its customers to withdraw cash from ATMs using the bank's mobile wallet. However, savings bank accounts will continue to get eight free ATM transactions (five at SBI ATMs and three at ATMs of other banks) in metros and 10 free transactions in non-metros (five at SBI ATMs and three at ATMs of other banks), the public sector lender added.
The limit of four ATM withdrawals per month only applies to the Basic Savings Banks Deposit Accounts, SBI added. State Bank of India's basic savings account is a limited-services bank account aimed at poorer sections of society to encourage them to start saving without any burden of charges or fees, according to the bank's website. This type of bank account comes with an ATM-cum-debit free of cost and no annual maintenance charges. A basic savings bank deposit account holder is not eligible to open or keep any other savings bank account.
SBI has also revised charges for other services for its customers, from June 1. Here are the key changes:
Cash withdrawal: Customers with a Basic Savings Bank Deposit will get four free withdrawals (including ATM) in a month, after which withdrawals will be charged - at Rs. 50 plus service tax at an SBI branch and at Rs. 20 plus service tax at other bank ATMs.
Charges on ATM cards: SBI said that issuance of new debit cards will be charged from June 1 and only the RuPay Classic Card will be issued for free.
Online transfer: Online fund transfer through IMPS will now be charged Rs. 5 plus service tax for amounts of up to Rs. 1 lakh; Rs. 15 plus service tax for above Rs. 1 lakh and up to Rs. 2 lakh, and Rs. 25 plus service tax for amounts above Rs. 2 lakh and up to Rs. 5 lakh.
Cheque book: From June 1, a customer with a Basic Savings Bank Deposit will have to pay Rs. 30 plus service tax for a 10-leaf cheque book, Rs. 75 with service tax for a 25-leaf cheque book and Rs. 150 plus service tax for a 50-leaf cheque book.
Exchange of soiled notes: SBI said exchanging up to 20 soiled notes or for value up to Rs. 5,000 will not attract any charges. However, more than 20 pieces of soiled notes will attract a charge of Rs. 2 per piece or Rs. 5 per Rs. 1,000 plus service tax whichever is higher on the entire tender, the bank said. For example, for 25 pieces of Rs. 500, which is equal to Rs. 12,500, the charges will be Rs. 2 per piece (Rs. 50 plus service tax) or Rs. 5 per Rs. 1,000 (Rs. 62.50 plus service tax). The amount charged will be Rs. 62.50 plus service tax.
Cash transaction through banking correspondents: SBI said cash deposits of up to Rs. 10,000 (in multiples of 100) through banking correspondents will be charged at 0.25 per cent of the value with a minimum of Rs. 2 and maximum of Rs. 8 plus service tax. Cash withdrawal of up to Rs. 2,000 (in multiples of 100) through the same channel will be charged at Rs. 2.50 per cent of the transaction value (minimum of Rs. 6) plus service tax.
Source:NDTV
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Monday, 15 May 2017

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Sunday, 14 May 2017

08:55

SBI to charge Rs 25 charge for every ATM withdrawal? No, that's not true

SBI to charge Rs 25 charge for every ATM withdrawal? No, that's not true

An SBI official has clarified that the bank will not charge Rs 25 per transaction on cash withdrawals contrary to a circular the bank had  earlier issued. The official has said that the notification was specifically for SBI mobile wallet (called Buddy) users.
The bank plans to issue a fresh circular soon making the clarification. "SBI will send a fresh notification by evening today to clarify the same. There will not be additional service charges, and existing rates will continue on withdrawals from ATM," the official told Business Today on condition of anonymity.
ATM charges, are set by the RBI, and uniform  for all banks. Rules mandate at least three fee transactions per month from ATMs of other banks and five from ATMs of own bank in metro cities. Banks charge Rs 20 per financial transaction and Rs.9.55, including tax, for every non-financial one beyond this limit.
Earlier today, in a vague circular,  the SBI announced a charge of Rs 25 per transaction on cash withdrawals. The circular titled 'revision in service charges additions/ modifications: wef 01/06/2017' said Rs 25 per transaction would apply on cash out through ATM.
The same circular went on to add that beyond four withdrawals, the bank would charge Rs 50 plus service tax at branch, Rs. 20 plus service tax at other bank ATMs and Rs 10 plus service tax at SBI Bank ATMs on Basic Savings Bank Deposit Accounts (BSBDA). 
Also, if a BSBDA customer  wanted to issue a cheque book, w.e.f June 1, he/she would have to pay Rs 30 plus service tax for a 10 leaf cheque book, Rs 75 with service tax for 25 leaf cheque book and Rs 150 plus service tax for a 50 leaf cheque book.
The order further stated that customers also have to pay charges over exchanging of old and sullied notes above Rs 5,000.
Cash deposit through banking correspondent of up to Rs 10,000 (in multiples of 100) would be charged at 0.25 per cent of the value with a minimum of Rs 2 and maximum of Rs 8 plus service tax.
Further, cash withdrawal through banking correspondent of up to Rs 2,000 (multiples of 100) would be charged at 2.50 per cent of the transaction value (minimum of Rs 6) plus service tax.
Also, if a customer wanted to issue a cheque book, w.e.f June 1, he/she would have to pay Rs 30 plus service tax for a 10 leaf cheque book, Rs 75 with service tax for 25 leaf cheque book and Rs 150 plus service tax for a 50 leaf cheque book.

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Thursday, 13 April 2017

09:17

Mumbai: Fearing crunch in future, banks limit cash in ATMS

Mumbai: Fearing crunch in future, banks limit cash in ATMS

Mumbai: It is almost two weeks since ATMs of several banks across the city have been running dry. There are many theories that have surfaced lately on this issue, the most prominent one is the supply cannot meet the cash demand.

However there is another chain of sequences here. While there are few banks that are unable to meet the demand, there are some banks who have decided to limit the cash filled in their machines, fearing cash crunch in the future.

Various banks like Axis, HDFC, Citi and Kotak did not have cash in their ATMs since April 1, 2017. Priyanka Nair, a working youth, said, “I tried to withdraw cash from the ATMs of these banks at Mulund (east), Mulund (west) and even Thane area but the ATMs were out of cash. The whole cash crunch scenario has been going on since April 1 but still the bank authorities have not done anything about it.”

A bank official from Canara Bank said, “There is a cash crunch even though there is a regular supply of cash. Transaction over the counter via cheques are smooth. However, the cash crunch is felt at ATM machines.”

Officials from private and public sector banks stated that few banks are facing the cash crunch and that has resulted to pressure on other banks as their customers are going to other banks to withdraw. “After our bank realised this is the case, we decided to put a limit to the cash that is filled in the ATMs. Our customers can withdraw cash over the counter smoothly,” stated an official of Punjab National Bank. This was same in the case of Axis bank and Federal Bank officials.

An official from Kotak Bank said, “The truck of the third party which usually fills in the money in the ATM has not come to our ATM at Goregaon since the last few weeks. We do not have Rs 100 notes at all since the start of April. But the senior bank officials are not bothered about it even though citizens have been complaining since a long time.”

Mohammed Omair, a working youth, said, “I tried withdrawing cash at five ATMs at Bandra (east) on Tuesday but was unable to get even Rs 2.000 note. A lot of people were trying but a large section of Bandra (east) area did not have cash in their ATMs.” Officials are unsure until when this issue will continue.

 Source:URl
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Monday, 3 April 2017

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Tuesday, 14 March 2017

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Monday, 13 March 2017

20:03

Reserve Bank Of India Lifted Cash withdrawals from Bank

Reserve Bank Of India Lifted Cash withdrawals from Bank

RBI removes limit on cash withdrawal, banks go back to pre-demonetisation era

The Reserve Bank of India on Monday lifted the limit on cash withdrawals from banks and ATMs.

The Reserve Bank of India on Monday lifted the limit on cash withdrawals from banks and ATMs. Earlier on November 8, last year, Prime Minister Narendra Modi had announced the much talked about demonetisation drive, banning the use of high denomination currencies i.e, Rs 500 and Rs 1000 notes. This a created a vacuum in the Indian economy as the replenishment could not be done immediately. The RBI had then issued a limit on the cash withdrawals from banks and ATMs to stabilise the flow of currencies. On February 20, the Reserve Bank on had said that the weekly limit on withdrawal of cash from savings bank accounts would be increased to Rs 50,000, from the current Rs 24,000.
“The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of remonetisation, it has now been decided to remove these limits in two stages,” said RBI Deputy Governor R Gandhi. He was speaking to the media, along with RBI Governor Urjit Patel, after the central bank announced the sixth bi-monthly monetary policy review. On the basis of remonetisation, RBI had earlier relaxed restrictions on cash withdrawal from current accounts, cash credit accounts and withdrawal through ATMs on 1 February. However, the weekly withdrawal limit of Rs 24,000 on savings bank accounts is continuing.

Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of the currency shortage following demonetisation. These limits, however, were being gradually eased, with RBI pumping in new notes of Rs 500 and Rs 2,000. To a question, if fake new currency notes of Rs 500 and Rs 2,000 have come into circulation, Gandhi had said the recent ones that have come to notice are photocopies of currency which can be easily identified by the common man. The deputy governor had said the new notes have enhanced security and design features, and are not easy to copy. “The recent one that we have seen is the pure photocopy, so it is not real counterfeiting. So, this photocopy is easy for even a common man to identify. It will be possible for them not to be easily duped,” he said.
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Thursday, 9 March 2017

13:55

Government requests SBI, other banks to roll back charges on withdrawal

Government requests SBI, other banks to roll back charges on withdrawal

The government also asked State Bank of India to roll back charges on minimum balance in the account.

New Delhi, March 6: Responding to the charges introduced by private banks and State Bank of India for withdrawing and depositing cash in home branches, the Central Government on Monday requested the banks to roll back charges levied on consumers. Following the path of Private banks, State-run State Bank too introduced charges for the customers for withdrawing and depositing cash in bank branches after three transactions. The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy.
The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy. The government also asked State Bank of India to roll back charges on minimum balance in the account.(HDFC, ICICI, Axis bank to charge Rs 150 after 4 cash transactions a month; public sector banks to follow suit)
In an earlier development, HDFC Bank, Axis Bank and ICICI Bank notified that after four transactions are completed, the customer will be charged Rs 150 per transaction if they are withdrawing or depositing money at the bank counter. The Rs 150 charged by the bank is exclusive of access and a tax will be charged separately, a report said. In a circular, HDFC Bank said that the charges will be levied on savings as well as salary accounts which and will be effective from March 1.
For the customers withdrawing money from the home branch, there is a limit of Rs 2 lakh per month per account, which is also known as an upper limit. Above that, the bank charges Rs 5 per thousand, subject to a minimum of Rs 150 (plus taxes and cess) will be applicable, HDFC Bank said in a statement.

Source:India.com
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13:51

IDFC Aadhaar Pay, the country’s first Aadhaar-linked cashless merchant solution

IDFC Aadhaar Pay, the country’s first Aadhaar-linked cashless merchant solution

IDFC Bank takes the lead, launches Aadhaar Pay

Dr Ajay Pandey, CEO,UIDAI, Dr. Rajiv Lall, Founder, MD & CEO, IDFC Bank, Amitabh Kant, CEO, NITI Aayog and Aruna Sundarajan, Secretary Electronics & IT (L to R ) during the launch of IDFC Aadhaar Pay , in New Delhi on Tuesday. - Photo by Kamal Narang | BusinessLine
IDFC Aadhaar Pay, the country’s first Aadhaar-linked cashless merchant solution, was officially launched on Tuesday, following successful pilots across 16 States.

Speaking at the launch event, Amitabh Kant, Chief Executive Officer, NITI Aayog, said IDFC Bank had set the trend and all other banks should now roll out a similar facility.

“You will not need micro-ATMs anymore in the country. Anybody with a mobile phone and small dongle can turn into a merchant for everyone else and start accepting payments,” he said.

Kant highlighted that the IDFC Aadhaar Pay was significant as it was not charging any merchant discount rate, which was a pain-point for merchants.

“IDFC Bank will have winner’s advantage. Other banks should follow IDFC in on-boarding merchants throughout the country. If they do not follow the lead that IDFC has set, technology will make them redundant,” Kant said.

He said the IDFC Aadhaar Pay launch was significant as it would “enable us to reach the bottom of the pyramid” where people do not have either GSM or mobile phone.

Given the slew of innovative measures taken in the last few months, India is poised to take a major leap towards financial inclusion and revolution in the coming days, Kant added.

Rajiv Lall, Founder Managing Director and CEO, IDFC Bank, said the launch (of IDFC Aadhaar Pay) was an important milestone in the journey to financial inclusion.

He pointed out that all the innovation that one had read about recently was focussed on that segment of population that had smart-phones. Only 350 million have smart-phones out of the total population have 1.2 billion. “The differentiating feature of the Aadhaar Pay technology that we are launching officially today is that it makes cashless transactions possible even to people who have no phones,” he said

Individuals with Aadhaar-seeded savings accounts in any bank can transact on IDFC Aadhaar Pay using fingerprint as digital identity to make cashless payments at merchant points.

Over the next 36 months, IDFC Bank will look to on-board as many as one lakh merchants across the country to its IDFC Aadhaar Pay solution, Lall said.

In the pilot phase spanning three months, over 1,500 merchants have enabled digital transactions for customers of all banks, using IDFC Aadhaar Pay on their smart-phones.

How it works?

IDFC Aadhaar Pay is an Aadhaar-linked interoperable banking software application developed by IDFC Bank. This app is made available on a merchant’s smart-phone. Customers can pay the merchant by selecting the bank’s name and filling only one field on the merchant’s phone — the Aadhaar number. The customer’s fingerprint is the password used to authenticate the transaction.

Customers need not use debit or credit cards, download mobile applications or even carry a mobile to make cashless transactions. This solution eliminates the hassles of remembering passwords, account numbers, setting up virtual payment addresses and using USSD codes to transfer money.

Aruna Sundararajan, Secretary, Ministry of Electronics & IT, lauded IDFC Bank for this pioneering initiative, stating that it signalled a paradigm change in the financial inclusion journey.

Describing the launch of IDFC Aadhaar Pay as “historic”, Sundararajan said this is equal liberation for the merchant. “We are truly hoping that hundreds of thousands of merchants will benefit and easily accept digital payments,” she added.

Srivats.Kr@thehindu.co.in

Source:BL



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Wednesday, 8 March 2017

07:11

Cash transactions: PNB not to levy charges for now

Cash transactions: PNB not to levy charges for now


To strengthen digital infrastructure
With the government asking SBI and other lenders to reconsider levying charges on cash transactions and ATM withdrawals above a certain limit, public sector lender PNB has adopted wait-and-watch policy. At the same time, the bank has said, it is strengthening its digital infrastructure and plans to launch digital bank within bank.
“Some of the banks have increased charges and fee on various services, but at the same time there is a request from the government to reconsider the decision. We don’t have any plan to introduce charges and fees on services as of now. However, I must say in order to move to digital channel, there is a cost attached to it,” said Usha Ananthasubramanian, MD & CEO, Punjab National Bank. She was in Panchkula today to distribute sewing machines to the SC women beneficiaries who were trained by Rural Self Employment Training Institute, Panchkula.
The government yesterday asked the SBI to reconsider its decision to levy penalty on non-maintenance of minimum balance. The bank has announced imposing a penalty ranging from Rs 20 to Rs 100 on non-maintenance of Minimum Average Balance (MAB) in savings bank accounts from April 1. Some private banks such as HDFC Bank, ICICI Bank and Axis Bank have already started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.
On being asked about digital infrastructure the bank is planning to develop, she said, “Brick and mortar branch model can’t be eliminated. To promote digital adoption, we are planning to launch digital bank within bank. We are working on the modalities and it is likely to take a year.”
After the demonetisation, the bank has received deposits worth Rs 93,000 crore. She said out of this, Rs 14,000 crore was deposited in loan accounts and Rs 200 crore to settle NPA accounts.
When asked about the reasons for low credit offtake, she said, “There are three main reasons behind it. First, the economy is not picking up as anticipated. Second, no new projects are coming up and thirdly bond market is getting stronger. However, we will continue to focus on agriculture, MSE and retail sector which is perennial cluster to boost credit offtake.”
She said the bank has identified assets worth Rs 1,800 crore which will be sold by the month-end to recover bad loans.



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Monday, 6 March 2017

21:29

70% want charges imposed on cash transactions to be removed: Survey

70% want charges imposed on cash transactions to be removed: Survey 

NEW DELHI: The recent changes made by private banks around charges being imposed on cash transaction have been met with opposition from consumers, with 70 per cent saying that these levies should be removed, a survey said. 

While banks are posing this move as another step towards making India a cashless economy, consumers are calling it a bad decision, according to survey conducted by LocalCircles. 

Around 70 per cent respondents of the 11,081 citizens voted on this poll want charges imposed by private banks on cash dealings to be removed, while 14 per cent said they will be fine with such levies once cashless transaction cost reduces. 

Asked about the latest charges imposed by private banks on cash transactions, 56 per cent said that they did not support this move and want the RBI to make the banks withdraw these levies immediately, 26 per cent said these charges don't matter as four free transactions were enough for them, and 4 per cent said that they were anyways using cashless operations. 

The survey noted that the charges on cash transactions is likely to prompt people to withdraw more than their requirements in one go and may actually result in higher magnitude of withdrawals and increased volume of cash transactions.

Consumers are also concerned with the cost of digital transactions and many of them have reported that merchants are still charging 2 per cent additional for debit, credit or wallet transactions. 

In a separate LocalCircles survey, consumers had indicated that debit card charges must be brought to zero while credit card and wallet charges must be capped at 0.5 per cent. 

A submission has been made by LocalCircles to the Department of Consumer Affairs, requesting them to take the matter with Reserve Bank of India and Ministry of Finance, LocalCircles said. 




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Wednesday, 1 March 2017

22:18

Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

India's second largest private sector bank HDFC has released an updated list of charges to be imposed on transactions effective from March 1, 2017.

A possible move to push India's journey to a cashless economy, public sector banks have taken a major step towards transactions and charges imposed on them. As of March 1, 2017, public sector banks will impose transaction charges on cash withdrawals and transactions in the bank.
India's second largest private sector bank, HDFC released an updated list of rules for its consumers.
According to HDFC bank's new rule, consumers will only be able to transact cash (both withdrawal and deposit) four times a month. From the fifth transaction, consumers will have to pay Rs 150 as transaction charge. On top of that, there will be cess and ta additional.
While a transaction of Rs 25,000 from a non-home branch won't cost you a penny, anything above Rs 25,000 will be charged Rs 5 per thousand or a minimal amount of Rs 150 once and for all. The tax and cess will be applicable on this amount as well.
At a home branch, if the cumulative cash (deposit and withdrawal) exceed Rs 2 lakh, a transaction charge of Rs 5 per thousand rupees or Rs 150 (plus tax and cess) will be levied.
According to HDFC, there will be no charge or tax for minors and senior citizens up to an amount of Rs 25,000 per day.
Third party transactions above Rs 25,000 won't be allowed. Only a transaction up to Rs 25,000 with Rs 150 charge will be accepted.
However, the cash handling charges imposed after the note ban have been removed completely.

Source:IndiaToday

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Monday, 13 February 2017

07:39

How much amount can withdraw from an ATM?

How much amount can  withdraw from an ATM?

With effect from February 1, 2017 limits on cash withdrawals from ATMs have been removed. Banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to the overall cash withdrawal limit for an account.

9. What are the cash withdrawal limits  for  accounts?
It has been decided to remove the restrictions on cash withdrawals from Saving Bank accounts in a two step process as under:
Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ₹ 50,000 per week (from the current limit of ₹ 24,000 per week); and
Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts.
Cash withdrawal limits for Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with effect from January 30, 2017.


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Thursday, 26 January 2017

18:47

Good news! RBI may lift weekly cash withdrawal limit by February end

Good news! RBI may lift weekly cash withdrawal limit by February end

With cash situation improving, there will be little need to have withdrawal restrictions: Bankers

With the cash crunch situation easing, the Reserve Bank might do away with the weekly withdrawal limits from banks as well as ATMs by the end of next month, bankers said.

The RBI had recently raised the ATM withdrawal limit to Rs 10,000 a day but maintained the weekly cap at Rs 24,000 for saving account and Rs 1 lakh for current account holders.

"I think the restrictions on withdrawal by RBI should be completely lifted by February-end or by first half of March as cash situation is easing gradually," Bank of Maharashtra executive director R K Gupta told PTI.

It is entirely RBI's decision and the central bank would decide after making holistic assessment of the situation, he said.

According to SBI's research report Ecowrap, "By the end of February, 78-88 per cent of the currency could be back in the system under the best case scenario in terms of an optimal currency distribution (more small denomination notes)," the report said, adding that "it seems within next 2 months things would be pretty close to normal."

Another senior public sector bank official said the situation is easing and it is a matter of weeks when the curb on withdrawal gets eased.

"My hunch is that it should happen before end of the current fiscal," the official said, adding, RBI has been progressively easing the curb.

The RBI had earlier increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500 effective January 1, just a day after 50-day demonetisation period ended.

Meanwhile, RBI Governor Urjit Patel could not set a time frame before the Standing Committee on Finance for return of normalcy in the banking system even as the central bank asserted that Rs 9.2 lakh crore or 60 per cent of demonetised currency has been replaced.

In a surprise move on November 8, Prime Minister Narendra Modi had announced demonetisation of old Rs 500 and Rs 1,000 notes.

Following the decision, the RBI had put restrictions on withdrawal of cash from ATMs as well as from banks to deal with shortage of new high denomination currency notes. This led to long queues at ATMs and bank branches.

All over the country, the banks had to deal with huge rush of people who thronged their branches to deposit junked notes. The deadline for depositing old notes with banks ended on December 30.




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Monday, 16 January 2017

18:12

Enhancement of withdrawal limits from ATMs and Current Accounts

Enhancement of withdrawal limits from ATMs and Current Accounts

RBI/2016-17/213
DCM (Plg) No.2559/10.27.00/2016-17

January 16, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks /
Regional Rural Banks / Urban Co-operative Banks /
State Co-operative Banks/District Central Co-operative Banks

Dear Sir,
Enhancement of withdrawal limits from ATMs and Current Accounts
Please refer to our circulars DCM (Plg) No. 1274, 1317, 1437 and 2142/10.27.00/2016-17 dated November 14, 21 and 28 and December 30, 2016, respectively, on the above subject.
2. On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect as under:
(i)The limit on withdrawals from ATMs has been enhanced from the current limit of ₹ 4,500/- to ₹ 10,000/- per day per card (It will be operative within the existing overall weekly limit).
(ii)The limit on withdrawal from current accounts has been enhanced from the current limit of ₹ 50,000/- per week to ₹ 1,00,000/- per week and it extends to overdraft and cash credit accounts also.
3. There are no changes in the other conditions. The relaxations as provided in our circular dated November 28, 2016 will continue.
4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Source:RBI
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Saturday, 31 December 2016

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Tuesday, 6 December 2016

08:28

Aadhaar-based Authentication for Card Present Transactions

Aadhaar-based Authentication for Card Present Transactions

RBI/2016-17/170
DPSS.CO.PD No.1421/02.14.003/2016-17
December 02, 2016

The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /
State Co-operative Banks / District Central Co-operative Banks/
Authorised Card Payment Networks / White Label ATM Operators /
Payments Banks / Small Finance Banks

Dear Madam / Sir,
Aadhaar-based Authentication for Card Present Transactions

A reference is invited to our circular DPSS.CO.PD.No.892/02.14.003/2016-17 dated September 29, 2016 wherein banks were advised to ensure that all new card present acceptance infrastructure deployed with effect from January 1, 2017 are enabled for processing payment transactions using Aadhaar-based biometric authentication also.
2. It has been brought to our notice that the rate of deployment of acceptance infrastructure has slowed down owing to the mismatch between demand and supply of such Aadhaar-enabled devices. Therefore, on a review, it has been decided to extend the time for deployment of Aadhaar-enabled devices till June 30, 2017. However, banks may continue to make necessary arrangements, including changes as host-end, network level and device readiness, as required to ensure adherence to above instructions.
3. Further, it is also clarified that the instructions contained in our circular dated September 29, 2016 are for deployment of new card acceptance infrastructure. As regards enablement of existing card acceptance infrastructure for processing payment transactions using Aadhaar-based biometric authentication, the timeline will be advised in due course.
4. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007).
5. Please acknowledge the receipt of this circular.

Yours faithfully,
(Nanda S. Dave)
Chief General Manager

Source:RBI 
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Tuesday, 29 November 2016

08:51

Central Government and Reserve Bank Of India Taken Measures after announcement of Demonitization Of Rs 500 and Rs.1000

Central Government and Reserve Bank Of India Taken Measures after announcement of Demonitization Of Rs 500 and Rs.1000

Prime Minister Narendra Modi shocked the country on November 8 by abolishing Rs 500 and Rs 1,000 notes, which accounted for 86% of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India’s cash economy to a virtual standstill.

The government and the Reserve Bank of India have since taken a slew of measures to ease the pain from its measures. They are detailed below in chronological.

November 25

- RBI says old currency notes can be exchanged at RBI branches.

November 24

- Government stops over the counter exchange of old banknotes; can only be deposited.

- Government to ensure adequate cash supply for pensioners, armed forces personnel.

- Allows certain payments in old Rs 500 notes including at tolls, hospitals for limited time.

November 23

- The government says will offer Rs 210 bn rupees in farm credit to farmers

November 22

- RBI sets balance kept in prepaid wallets, cards (PPIs) at 20,000 rupees from 10,000 til Dec 30

- Merchants can transfer up to 50,000 rupees from PPIs to banks til Dec 30

- Monthly limits on transactions via PPIs raised to 20,000 rupees for 10,000 til Dec 30

- RBI asks state-run Nabard to disburse up to 230 bn rupees for crop loans.

November 21

- The RBI allows cash withdrawal of up to Rs 2,50,000 rupees for wedding-related expenses.

- The RBI allows farmers to withdraw up to Rs 25,000 rupees a week from their loan, deposit accounts.

- The RBI gives small borrowers 60 more days before loans of up to Rs 10 mn are marked substandard.

- The government allows farmers to purchase seeds from state-run outlets with old Rs 500 notes.

November 18

- The RBI sets limit of cash withdrawal at card swiping machines at Rs 2,000 per day.

November 17

- The government allows farmers to withdraw up to Rs 25,000 a week against the crop loans.

- The government extends time limit for farmer to pay crop insurance premiums by 14 days.

- Cuts limit for over-the-counter exchange of old bills at banks to Rs 2,000 from Rs 4,500.

November 15

- The government says banks must use indelible ink to ensure people change cash only once.

November 14

- The government extends deadline for payments in old notes including for petrol for limited time.

November 13

- The RBI raises cap on weekly cash withdrawals from banks to Rs 24,000 from Rs 20,000.

- Removes per-day withdrawal limit cap of Rs 10,000.

- Raises limit for over-the-counter exchange of old bills at banks to Rs 4,500 from Rs 4,000.

- Waives ATM fees for all transactions by savings bank customers til December 30.

- The government increases withdrawal limits at recalibrated ATMs to Rs 2,500 per day from Rs 2,000.

November 11

- Extends deadline for payments in old notes including for petrol for limited time.

November 8

- India abolishes Rs 500, Rs 1,000 notes in fight against black money.

- Rs 500, Rs 1000 notes must be tendered into banks, RBI by December 30.

- Caps exchange of old bills over-the-counter at banks at Rs 4,000.

- Caps cash withdrawals from bank accounts at Rs 10,000 per day till November 24.

- Caps cash withdrawals from bank accounts at Rs 20,000 per week till November 24.

- Caps cash withdrawals from ATMs at Rs 2,000 per day per card till November 18.

- Caps cash withdrawals from ATMs at Rs 4,000 per day per card from November 19.

- Allows certain payments in old notes including for petrol for limited time.

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08:10

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



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