After the recent demonetization of Rs 500, Rs 1000 notes, the government has taken various measures to ease cash crunch faced by common people. The government is also facilitating and encouraging the use of digital payments.
India was popular as a cash-based economy the circulation of fake Indian currency notes was a menace.
Over the counter exchange of old notes is not permitted from November 25, 2016. Earlier, individuals were allowed to exchange old currency in banks and post offices.
Now members are pushed to approach the banks to deposit old currencies into their bank accounts, while there is a limitation when it comes to withdrawal of money from your bank account.
How much can you withdraw from an ATM?
Individuals can withdraw cash up to Rs 2500/- per day from ATM. This will enable dispensing of lower denomination currency notes for about Rs 500/- per withdrawal. Other ATMs which are yet to be recalibrated, till than they will continue to dispense Rs 2000.
Banks have also been advised to increase the Business Correspondents' limit of dispensing cash to Rs 2500/- for withdrawal from bank accounts.
Customers can also swipe their debit cards at select fuel pumps of state-owned oil companies, big bazaar to withdraw up to Rs 2,000.
How much can you withdraw from Cheque?
Bank customers can withdraw up to Rs 24,000 from their bank account per week and the amount is includes withdrawals from ATMs and over the counter from the bank accounts.
These limits are not applicable to cash withdrawal from a bank account by one bank from another bank, Post Office, Money changers operating at international airports and operators of White Label ATMs.
How much can you withdraw for Wedding?
Individuals who have upcoming wedding are permitted for cash withdrawal of maximum Rs 2,50,000/- from their bank deposit accounts till December 30, 2016 to meet wedding affiliated expenses.
This is subject to the following conditions:
- The account should be fully KYC compliant.
- The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.
- Withdrawals can be made by either of the parents or the person getting married.
Also, evidence of wedding along with declarations should be submitted to the bank.
How much a business person can withdraw?
Business entities having current accounts which are operational for last three months or more will be allowed to draw Rs 50,000 per week as per RBI guidelines.
This can be done in a single transaction or multiple transactions. Also, the facility is extended to overdraft and cash credit accounts and traders registered with the Agricultural Produce Market Committee (APMC) markets or mandis.
Accordingly, holders of current, overdraft, cash credit accounts, which have been operational since last three months or more, can withdraw up to Rs 50000 in cash, in a week.
What are the other modes to transfer funds?
Bank customers can make use of NEFT, RTGS, IMPS, Internet Banking, Mobile Banking or any other electronic/ non-cash mode of payment.
Additional measures have been introduce by way of special dispensation for small merchants and enhancement in limits for semi-closed Prepaid Payment Instruments (PPIs).
The limit of mobile wallets has been increased to Rs 20,000 from the existing Rs 10,000 till December 31, 2016.
How much a foreign tourist can exchange?
Foreign tourist can purchase foreign exchange up to Rs 5000 using old notes at airport exchange counters, provided you present proof of purchasing the Specified Bank Notes. Foreign citizens will be permitted to exchange foreign currency up to Rs 5000 per week.
What are the benefits for farmers?
Farmers are allowed to draw upto Rs 25,000 per week in cash from their loan including Kisan Credit Card limit or deposit accounts subject to their accounts being compliant with the extant KYC norms.