The Reserve Bank of India on Monday eased withdrawal limits for those who are depositing valid currency in their bank accounts to lure fence sitters to deposit their collections.
Withdrawal limits for other customers remains capped at Rs 24000 per week.
The regulator said it had been brought to its notice that certain depositors were hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.
“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 said in a notification.
For instance, if you have deposited Rs 10,000 in your account of which Rs 6000 is old notes and Rs 4000 is in legal tender you can withdraw that additional Rs 4000 over and above the Rs 24000 weekly cap.
The daily limit of withdrawal from recalibrated ATMs was increased from 2000/- to 2500/- per day while retaining the same at 2000 in case of other ATMs with banks until they are re-calibrated.
For current accounts, the withdrawal limit is Rs 50,000 a week for small traders. In a late evening circular, the Reserve Bank said that 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.