Cash withdrawal and Deposit limit was never been imposed on Indian 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 Also a weekly limit was imposed on amount that can be withdrawn from a bank account in a specified week.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When currency notes was withdrawn all of a sudden on 8-11-2016 by Indian government, everyone was in a state of shock without knowing what to do next.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 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
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.
ATM withdrawal limit
Rs.10,000 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
Withdrawal limit on Current account is Rs.1,00,000 per week.
Cash deposits up to maximum of Rs.12,50,000 can be done till 30 December 2016 without Income tax department’s enquiry.
Cash Credit account withdrawal limit
Withdrawal limit on Cash Credit is Rs.1,00,000 per week.
Overdraft account withdrawal limit
Withdrawal limit on Cash Credit is 1,00,000 per week.
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.