RBI eases withdrawal limits for deposits made in legal tender

The Reserve Bank of India on Tuesday; 29th November 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.


The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate cash crunch following the demonetization of old 500 and 1,000 rupee 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,” RBI said in a notification.

For instance, if you have deposited Rs 10,000 in your account of which Rs 6000 is old notes and Rs 4000 is in legal tender you can withdraw that additional Rs 4000 over and above the Rs 24000 weekly cap.

The notification is being viewed as a relief from the central bank ahead of salaries that companies credit to employees.

Meanwhile, RBI said People have exchanged and deposited about Rs 8.45 lakh crore worth of scrapped Rs 500/1,000 notes at different banks till November 27 following demonetization of the high value currency on November 9.The banks also disbursed over Rs. 2.16 lakh crore over the counter and via ATM’s from November 10-27. Of this, the exchange of old Rs 500/1000 notes amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore.

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