RBI Relaxes The Withdrawal Limits From Bank Deposit Accounts

Business

oi-Nithya Nair

The Reserve Bank of India has now relaxed the withdrawal limit from bank deposit accounts.

By Nithya Nair

Updated: Tuesday, November 29, 2016, 12:12 [IST]

The Reserve Bank Of India (RBI) relaxed the withdrawal limit from bank deposit accounts. The new move is to ensure more liquidity with people but did not announce how much people can withdraw.

The Central bank said that It has noticed 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, RBI added.

Currently, people can withdraw up to Rs 24,000 in cash from ATMs, over-the-counter at the banks, and from post offices.

Following demonetization of Rs 500 and Rs 1000 notes from midnight of November 8, people rushed to banks, ATMs and post offices to deposit and withdraw money. Now old currency notes can be used for making deposits in small savings schemes.

RBI also said Rs.8.1 lakh crore had been deposited in banks following the demonetization move (as of November 27) while Rs 33,948 crore had been exchanged. The public has withdrawn Rs 2,16,617 crore during this period, from their accounts either over the counter or through ATMs.

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