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No limit on withdrawals if deposit is made in new currency notes : RBI

RBI In Its Notification Said That From November, 29, There Would Be No Limit On Withdrawals If Deposit Is Been Made In New Legal Tender Note

News Nation Bureau | Edited By : Apoorva Nawaz | Updated on: 28 Nov 2016, 11:06:58 PM
No limit on withdrawals if new notes deposited

New Delhi:

To ease the current cash crunch post demonetisation, RBI in its notification  said that from November 29 there would be no limit on withdrawals if deposit is been made in new legal tender note.

For example, if someone deposits valid legal tenders (Rs2,000, Rs 500, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5) of Rs 4,000,the withdrawal limit for that person would rise by Rs 4,000 over and above weekly withdrawal limit of Rs 24,000.     

For current accounts, the withdrawal limit is Rs 50,000 aweek for small traders.  

RBI latest notification reads:

 Withdrawal of cash from bank deposit accounts - Relaxation

1. 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.

Public deposited Rs 8.11 lakh crore in banks, withdrew Rs 2.16 lakh crore from accounts/ATMs since November 9, says RBI.

After the withdrawal of legal tender character of old Rs500/1000 notes from November 9, a Rs 24,000 per week limit(including from ATM) on withdrawal has been put in place. 

Additionally, RBI has also allowed banks operating currency chests to operate Chest Guarantee Scheme for Specified Bank Notes (SBNs)CGSS if they have additional space. However, they can do so if the additional space in their existing currency chest or additional storage space at the same centre which is nearly as safe and secure as that of acurrency chest. Requisite approval for operating CGSS will be granted by RBI Regional Office  concerned, on receipt of request from any bank, it said. 

On Sunday, RBI had allowed banks to park such currencies at currency chests at the district level so as to decongest the storage facility. A currency chest operating at the point to be called Designated Chest (DC) will be required to operate a separate vault -- to be named Chest Guarantee Vault (CGV) -- as an extended arm of it, it had said



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First Published : 28 Nov 2016, 10:45:00 PM