RBI eases withdrawal limits for deposits made in legal tender

The Reserve Bank said that 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.

By: PTI | Mumbai | Published:November 28, 2016 11:11 pm
RBI, Rs 4000, Reserve Bank, bank withdrawal limits, RBI withdrawal limit, ATM, news, latest news, India news, national news RBI has also allowed banks operating currency chests to operate Chest Guarantee Scheme for Specified Bank Notes (SBNs)–CGSS if they have additional space.

To encourage people to deposit valid currency notes in banks, RBI on Monday said bank customers would be able to withdraw deposits made in current legal tender notes beyond the current limits, a move aimed at increasing currency circulation in system. For example, if someone deposits valid legal tenders (Rs 2,000, 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.

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For current accounts, the withdrawal limit is Rs 50,000 a week for small traders. In a late evening circular, the Reserve Bank said that 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.

“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 Rs 2000 and Rs 500 are to be issued for such withdrawals,” the Reserve Bank said.

After the withdrawal of legal tender character of old Rs 500/1000 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 a currency 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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  1. J
    Johnny Cash
    Dec 18, 2016 at 6:39 pm
    I am in the middle of constructing my house, this withdrawal limit of Rs 24000 has been a kick in the nutt for a month or so now...even if i pay my workers in cheques, that will be also be debited from my weekly limit, now i'm left with no cash to buy groceries. Mr.Modi speaking of cashless society!!!!. come on, that is gonna take at least 20 years..i'm mad, i'm frustrated, i'm sad, i feel like, i don't know, i don't know...please fix this god forsaken country soon...
    Reply
    1. R
      Rahul
      Nov 29, 2016 at 4:58 am
      Why would you want to risk depositing your new money in bank anyway? Why would someone stand in line to deposit and then stand again to withdraw? This doesn't impact or help the common person but is devised to give the perception of such only.
      Reply
      1. A
        Anil
        Nov 29, 2016 at 1:40 pm
        After such hardship to the majority of the country with regard to withdrawing their own money, the government needs to either roll back on their initial steps to demonetize Rs 500 and Rs 1000 currency notes, as no steps to alleviate this great inconvenience quickly seem to be working. Lives have already been lost as a result. India no longer feels like a democracy or at least the spirit is apparently not coming through. lt;br/gt;lt;br/gt;In my personal opinion, facilitation of convenient and secure day to day living to the citizens of India is the government's prime objective. Any steps taken should not come in the way of this basic obligation of the government to its people. Even if motives are good, the means to achieving them, matter. The need for the times we are in, is compionate leadership. Compionate leadership is not necessarily weak leadership as the term may suggest, probably stronger and more effective. Let's not forget hi ji... I wonder how he would feel if he was here to see the current situation. Would his opinion matter...lt;br/gt;lt;br/gt;Anil
        Reply
        1. A
          Anil
          Nov 29, 2016 at 1:03 pm
          Well said Rahul. Common sense seems to currently seems to have completely failed for many. Nice to hear people thinking clearly. Which is also the need for the current time we are in.lt;br/gt;lt;br/gt;Anil
          Reply
          1. K
            Kumaresh Kumaresh
            Nov 29, 2016 at 4:33 pm
            Pragmatism and realism cannot be over shadowed by feelings of compion. The withdrawl of these notes was over due. As Indians we should understand that benefits that will accrue to the Nation as a w and primarily to the lower and middle cl in the next 1-2 years once the money deposited with banks begins its journey into the economy.. lt;br/gt;hiji advocated "bandh" against British rule... how do you justify Kerala and Karnataka govts having a bandh.. misuse of the hi name by certain political parties and now his "limited" ideology by others!
            Reply
            1. K
              Kumaresh Kumaresh
              Nov 29, 2016 at 4:37 pm
              You are depositing demonetized money because you have it in the form of cash... if your money was in the bank ...why would you do any of this. A large portion of India seems to operate on cash...mostly legit... but there are the likes of naxalites etc.. whose cash holding is estimated at over 60,000 crores... they would feel the pinch as did the JNU kinds in JandK... what stopped the stone pelting suddenly?? THINK!
              Reply
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