New Delhi, Nov 28: Reserve Bank of India (RBI) has revoked the limit imposed on cash withdrawals from bank accounts. However, the cap has only been removed on deposits made in current legal tender on, or after, November 29. In other words, only the amount of money deposited using new notes of Rs 500 and Rs 2000 from Tuesday onwards can be withdrawn with no limits. But the the limit imposed on withdrawal of deposits made till today, mostly in old notes of Rs 500 and Rs 1000, would continue to remain.
“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,” RBI Chief General Manager P Vijaya Kumar was quoted as saying in the press release.
The decision has been taken by RBI to remove apprehensions. People have shown relent to deposit the new currency notes in banks, due to the limit imposed on withdrawals.
On the deposits made till November 28, the existing withdrawal limits would continue to remain imposed. A maximum of Rs 10,000 per day and Rs 24,000 per week could be withdrawn. Withdrawal from ATMs have been curbed to Rs 2,500 per transactions. The exchange of old currency notes over the counter has been stopped after November 24.