Withdrawals of deposits made in current legal tender allowed beyond current limits: RBI

Zee Media Bureau

New Delhi: In the latest notification, Reserve Bank of India (RBI) has allowed withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits.

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.

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

The notification has taken this step in wake of reports that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.

Preferably, available higher denominations bank notes of ₹ 2000 and ₹ 500 are to be issued for such withdrawals.

"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;

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.