Cash withdrawal and Deposit limit in India till 31-12-16 on Bank Accounts

Cash withdrawal and Deposit limit in India was never been imposed on bank accounts till 8th November 2016. This was day when Indian Prime minister Narendra Modi led BJP government announced decision to demonetize Rs.500, Rs.1000 currency notes. At time of announcing of demonetization it was said that people should adjust to current difficulties for 50 days that is till 31 December 2016. Exchanging and depositing of old currency notes have been done at all branches of Indian banks with limits specified on deposits. There was also warning that any excess cash deposits more than Rs.2,50,000 will have inquiry from Income Tax department. Increase in withdrawal limit is expected to be announced by Reserve Bank of India as currency availability in country increases. Present withdrawal limit on savings accounts is Rs.24000.

Most difficulty faced by people was when restrictions was imposed on cash withdrawal amounts from bank accounts. Also a weekly limit was imposed on amount that can be withdrawn from a bank account in a specified week. These rules were new to people of India who have never came across any such situations after India’ independence in 1947. Narendra Modi in his fight against black money decided to do demonetisation of currency to defeat corruption and counterfeit currency from Pakistan.

When currency notes was withdrawn all of a sudden on 8-11-2016 by Indian government, everyone was in a state of shock without knowing what to do next. There are accusations that this move had helped only mobile wallet companies. No problem is faced by rich people while common people are struggling to live with little cash in hand. Present Cash withdrawal and Deposit limit in India is expected to continue till 31 December 2016. There is no guarantee regarding when will these limits be changed. It seems most people have become used to these withdrawal limits imposed by Reserve Bank of India.

Supply of new currency notes has been increased by RBI to meet present cash crisis. When new Rs.2000 notes has been introduced it became difficult for people to use it. It’s because using this high denomination note to do shopping or purchases is difficult.

If a customer gives Rs.2000 note and buys for Rs.300 how can a shop owner give back change of Rs.1700. For few customers change can be given, what will happen if most people come with Rs.2000 notes.

RBI introduced Rs.500 notes which is being distributed by most banks. RBI also decided to introduce new Rs.100 notes in huge quantities. Along with this new Rs.20 and Rs.50 notes will also be brought in to avoid difficulties in cash transactions.

It’s expected that soon RBI will bring changes to Cash withdrawal and Deposit limit in India on different types of bank accounts like savings bank accounts, current accounts, cash credit accounts, over draft accounts.

There is also doubt among many people regarding whether the problems will end by end of 2016. Lot of people think that problems with related to withdrawal limits on cash may continue to 2017.

Latest Cash withdrawal and Deposit limit in India

From 1st February 2017 (1-2-2017) there will no withdrawal limit applicable on current accounts, cash credit accounts, overdraft account. Savings accounts will continue to have Rs.24,000 as limit per week. There will be no daily limit applicable on savings accounts.

For ATM withdrawals in savings accounts there will be Rs.24,000 daily limit which is same as weekly limit.

Restrictions have been imposed on withdrawal and deposit of physical cash in bank accounts. There are limits on depositing old currency, while there is no limit in depositing new currencies or existing legal currencies. It is essential to know about different limits in deposits and withdrawals of cash from bank accounts.

Cash withdrawal and Deposit limit in India

ATM withdrawal limit

Rs.24,000 is daily withdrawal limit from ATM counters of various banks. This amount is included in weekly withdrawal limit of total Rs.24000 per week. ATM transaction charges are now back and there is a limit of 5 free transactions per month.

Cheque withdrawal limit

Cash up to amount of Rs.24000 is latest Cheque withdrawal limit per week from a savings bank account. This amount can be withdrawn as single or multiple transactions. But weekly limit of maximum Rs.24000 can be withdrawn in total from a savings account.

In case of business accounts like current account, cash credit, over draft .etc. withdrawal limit using cheque can be done up to Rs.1,00,000 per week.

Withdrawal slip limit

Other than withdrawing from banks using cheque or from bank branches using cash cheque, another way is to take cash using withdrawal slips. This is most preferred way by customers in withdrawing money from their accounts.

For savings accounts this withdrawal limit is Rs.24,000 and for other trade accounts like current account, cash credit, over draft this limit is up to Rs.1,00,000.

CDM Cash Deposit Machine deposit limit

Through CDM’s or Cash Deposit Machines cash can be deposited in to accounts. New and old currency is being deposited by account holders. Maximum Rs.49,900 can be deposited. If cash is deposited exceeding Rs.2,50,000 from 8-11-2016 to 30-12-2016 there will be inquiry by Income Tax department

Savings account withdrawal, deposit limit

Withdrawal limit on savings bank accounts is Rs.24,000 per week. There is no daily withdrawal limit, which means you can withdraw up to Rs.24,000 on a single day itself. After that next withdrawal can be done only in next week.

Cash deposits up to Rs.49,900 in savings accounts can be done without quoting PAN number.

In savings accounts maximum cash deposit limit till 30-12-2016 is Rs.2,50,000. Only if savings bank account deposits exceeds this amount, there will be questions asked by Income tax.

Current account withdrawal, deposit limit

All withdrawal limits have been removed with immediate effect from Wednesday, 1 February 2017.

Cash Credit account withdrawal limit

All withdrawal limits have been removed with immediate effect from Wednesday, 1 February 2017.

Overdraft account withdrawal limit

All withdrawal limits have been removed with immediate effect from Wednesday, 1 February 2017.

Jandhan account withdrawal, deposit limit

Jan Dhan accounts are closely watched by authorities in suspicion that black money is being deposited in benami names.

Jandhan deposit limit is made to maximum Rs.50,000 per account balance.

Withdrawal limit on KYC compliant Jandhan accounts is Rs.10,000 per month while in Non-KYC accounts it is restricted to Rs.5000.

Withdrawal limit removed for different types of ban accounts in India from 1 February 2017. As per Reserve Bank of India (RBI) instructions withdrawal limit removed completely on current accounts, cash credit accounts, overdraft accounts. RBI has removed limit on withdrawal from these accounts with immediate effect from 1-2-17 to improve business related transactions, which has been facing problems after demonetization. After 8 November 2016 when demonetisation of old currency notes happened every one was facing cash crisis which affected all types of transactions.

Restrictions on amount withdrawn per day from savings accounts have been removed. But weekly limit of Rs.24,000 has not been changed. This is still applicable and is expected to be removed completely after few weeks. Daily withdrawal limit removed for ATM transactions for Savings bank accounts. Earlier it was just Rs.2500 which was raised to Rs.4500, then Rs.10,000 and then to Rs.24,000 per week as of 1 February 2017. As availability of cash increased, ATM withdrawals up to Rs.24,000 is possible in a single day.

Reserve Bank of India (RBI) has removed the withdrawal limit from current accounts, cash credit accounts and overdrafts accounts with immediate effect. Savings bank accounts now have weekly limit of Rs.24,000 for withdrawals from ATM, Cheque, Withdrawal slips .etc. Removal of limit on Savings account withdrawal from banks directly through withdrawal slips, cheques will be an important decision which is expected to come soon. Savings bank account customers are requesting for removal of Rs.24000 limit too. Even if it’s removed the daily limit will be around Rs.50,000 which was applicable earlier before currency demonetization.

News that Reserve Bank of India has lifted limits on withdrawals from 1 February 2017 has been a big relief to everyone.

Now only savings account withdrawals has to be removed completely. Digitization of transactions is recommended by banks. Considering ease of making and receiving payments in bank accounts, online payment apps recognized by Indian government is becoming popular.

Aadhar Pay app is an official mobile app which will make payments using bank accounts by just using finger prints or Aadhar number linked to bank accounts. Bhim app has received good response from people of India in making online transactions.

RBI lift cash withdrawal limit from ATM

Latest withdrawal limits in Bank accounts at India as on 1 February 2017

Asianet News – RBI removes cash withdrawal limits from ATMs

Present withdrawal limits applicable in India for bank accounts from 1 February 2017 (1-2-17).

  • Current accounts – No limit on withdrawals, deposits in Current accounts.
  • Cash credit accounts – No limit on withdrawals, deposits in Cash credit .
  • Overdraft accounts – No limit on withdrawals, deposits in Overdraft accounts.
  • Savings accounts – They have limit of Rs.24,000 per week and no daily limit.
  • ATM – Withdrawal limit is Rs.24000 per week.