From 29 November 2016 there will be new cash withdrawal limits specified by Reserve Bank of India (RBI). In present situation there has been huge demand from people to make relaxations in withdrawal amounts from bank accounts. Presently there is Rs.24000 weekly limit withdrawal on savings bank accounts, Rs.50000 limit on current accounts, cash credit accounts, over draft accounts. This has made it difficult for people to spend cash for their various needs. Central government is recommending everyone to use card payments using wallets .etc. to make cashless transactions without currency. But for various needs only cash payment can be made.
Central government will form a Five member team of Chief Ministers panel to discuss possibilities of Currency-less India (country without currency – only card transactions). Discussions regarding possibility of such a implementation is being considered by Indian Government.
A major change made in withdrawal limit is on new cash deposits from 29th November 2016, using legal tender currencies of values Rs 100,Rs 50, Rs 20, Rs 10, Rs 5, Rs 2,000, Rs 500 (new 500 notes). There will be no withdrawal limit applicable on cash from bank accounts deposited using new or existing currencies. Cash Withdrawal limit or Cheque withdrawal limit from 29 November 2016 will depend on amount of new, old currencies of Rs.500, 1000 denominations. This is applicable on all savings and current accounts in India coming under guidelines of Reserve Bank of India. So what is new weekly withdrawal limit of savings, current accounts in India from Tuesday, 29th November 2016. RBI is expected to increase cash withdrawal limits on Indian accounts after demonetisation on 8th November 2016.
At first weekly limit was Rs.10,000 which was changed to present Rs.24000. On 29-11-16 RBI circular is expected to come regarding new withdrawal limits applicable this week.
Regarding new deposits in bank accounts using new legal tender currencies (except old Rs,500, Rs.1000), RBI has decided to waive off any weekly limits. This decision has been made to make sure that cash flow happens and no shortage is experienced.
Cash withdrawn or in hands of people are not deposited back fearing of weekly withdrawal limit in case of an urgent need.
This has made a shortage of cash in banks to distribute to people. To avoid this scenario from happening, Reserve Bank of Inida has decided to allow limitless withdrawal on new deposits using existing legal currency notes.
If you are making withdrawal using cheque or withdrawal slips, cash can be withdrawn as per your exiting limits and new deposits.
For example – You are depositing Rs.35000 in your bank account. Out of this Rs.11,000 is new currency and Rs.24000 is old Rs.500, Rs.1000 notes.
In this week you require withdrawal of Rs.35,000. You can withdraw Rs.35000 overcoming weekly withdrawal limit of Rs.24,000.
It’s because you have deposited Rs 11,000 new existing notes. You can withdraw weekly limit of RS.24000 + any amount of new notes deposited.
Your deposit will be categorized into new and old currency amounts. Withdrawal of money savings, current accounts will be based on this. Weekly limit will be applicable only on old deposited cash in account.
New cash deposited can be withdrawn any time. But this kind of withdrawal is possible only from bank withdrawals using cheque or slips.
Cash withdrawal limit of savings accounts is Rs.24,ooo per week from bank branches and Rs.50,000 for current accounts.
ATM withdrawal will remain as Rs.4500from 1-1-2017 till further notification from Reserve Bank of India.