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

Dear Sir,

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.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

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Category : Fema / RBI (3549)
Type : Circulars (7886) Featured (4581) Notifications/Circulars (32636)
Tags : black money (740) Demonetization (479) RBI Notifications (2013)

10 responses to “No restriction on cash withdrawal of deposit made in legal tender notes”

  1. RAJAGOPAL says:

    This notification is issued in a hurry, not after careful consideration as it claims. As per the notification the cash withdrawal restrictions continue to apply even if the credits comes to account by way of cheque deposit/bank transfers. Is it not ridiculous?

  2. SUMIT says:

    What about transfers, pension credit, salary credit, cheque credit in the a/c. Can we withdraw whole amt?

  3. FORAM soni says:

    No limit of depositing your 500 or 1000 rs notes but withdrawal limit is 24000 per week

  4. CA. M. Lakshmanan says:

    For this purpose the Banks should be ready with the data as to how much was deposited in the form of old notes and how much in lower denomination & new Rs. 2000/- and new Rs. 500/-.
    Deposits made by drafts & Cheques and transfers made via NEFT, RTGS etc. should also be allowed to be withdrawn in addition to the balance that was in the account as at the close of business on 8th November.

    • RAMESH says:

      deposits in legal tender allowed. refere clarrificatons issued

      • CA. M. Lakshmanan says:

        Yes Legal tender deposited can be withdrawn; but how? unless the Bank is ready with the details of deposit i.e whether it is old currency or new currency they can not pass the cheque. For this purpose all the pay-in-slips have to be verified. Whether Banks are ready?

  5. Dr A Subrahmanyam says:

    1) Perhaps you cannot have old Notes of 500 and 1000 today coz your closing cash balance as of 8th November must have been liquidated by now either through exchange-mode or through deposit into your account;

    2) Assuming that you have not deposited or exchanged so far, then there is no change in the procedure except that you need to deposit the same into your account only. No limit for deposit except you should be able to prove your sources or you will have to pay 49.9% tax if no sources.

    3) Withdrawal is 24K per week for individual and 50K for current account, remained unaltered as of now, in the given circumstances of your case.

  6. Saurabh Mandot says:

    My query is if today I have old 500 or 1000 rs. Notes then what is the limit for there deposits as on today and there withdrawal

    • Bankim Master says:

      There is no confusion in that Saurabh-ji; as far as old notes are concerned, there is no change. No limit on deposit, 24000/week limit for withdrawal (50000 for current account). What is not clarified.in this latest circular is what about balance in the account as on the close of business on 8th Nov. 2016? Surely, there should not be any limit on withdrawing that amount, going by the latest clarification. Why all the scenarios are not considered while clarifying or amending earlier instructions? Pathetic.

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