RESERVE BANK OF INDIA
November 28, 2016
The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks /
Regional Rural Banks / Urban Cooperative Banks/
State Cooperative Banks/ District Central Cooperative Banks
Withdrawal of cash from bank deposit accounts – Relaxation
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.
2. 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 ₹ 2000 and ₹ 500 are to be issued for such withdrawals.
(P Vijaya Kumar)
Chief General Manager
The Reserve Bank of India (RBI) on Monday clarified ( refer above notification or circular by RBI) that if deposits had been made in legal tender, then depositors could withdraw that amount over and above the Rs.24,000 weekly limit.
The move was aimed at allowing comfort to individuals who were hesitant to deposit legal tender following the withdrawal of high-value currency notes which came into effect from November 9.