No limit on withdrawal of new retailer deposits
Some people were worried about not being able to withdraw cash.
Mumbai: In a bid to discourage cash hoarding, RBI on Tuesday relaxed norms on withdrawal limits stating that those who deposit legal tender currency notes with banks would be allowed to withdraw money beyond the current limits.
The move is aimed at addressing the shortage of cash with banks that has impeded the smooth exchange and withdrawal of cash under the prescribed limit at several banks and ATM’s across the country following the demonetisation of old Rs 500 and Rs 1,000 notes.
“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,” RBI said in a notification.
However, RBI added that higher denominations new bank notes of Rs 2,000 and Rs 500 would be issued for such withdrawals. Since the announcement of the withdrawal of high denomination currency notes, the general public had deposited or exchanged Rs 8.44 lakh crore as on November 27 with exchange amounting to Rs 33,948 crore and deposits amounting to Rs 8.11 lakh crore.
According to RBI, public have also withdrawn Rs 2.16 lakh crore from their accounts either over the counter or through the ATM’s.