RBI/2016-17/163
DCM.No.1437/10.27.00/2016-17
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
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?
What about transfers, pension credit, salary credit, cheque credit in the a/c. Can we withdraw whole amt?
No limit of depositing your 500 or 1000 rs notes but withdrawal limit is 24000 per week
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 should also be allowed to be withdrawn in addition to the balance that was in the account as at the close of business on 8th November.
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.
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