New Current account cash withdrawal limits in India with Weekly Limits set by RBI

By demonetisation of Indian rupee notes of values Rs.500, Rs.1000 from 8 Nov 2016, all bank accounts including trade or current accounts are limited. So there are lot of doubts of regarding current account cash withdrawal limit per week. The weekly limit dates on which withdrawal of cash can be made should also be known.

With limiting of currency circulation for past few days, to make cash flow equal many companies were facing difficulties in payment of daily expenses. From 10 November 2016, all Current accounts were allowed Rs.20000 withdrawal with Rs.10,000 per day limit. After few days on 14th November this limit was raised to Rs.50000 and daily limit for making withdrawals was removed. With this decision there is weekly limit from 10-11-16 to 18-11-16. Total current account cash withdrawal limit per week is now Rs.50000 which is relief to all companies, shops.etc. for their daily expenses.

Soon when cash flow of new Rs.2000 and Rs.500 notes becomes steady in market, weekly limit of Fifty thousand rupees will be definitely removed. But till 30 December 2016 nothing regarding withdrawal limits from savings, current accounts can be known. Withdrawal from current account through withdrawal slips, cheques, ATM transactions are included in Rs.50000 weekly limit. It is possible to do online transactions like fund transfer in current accounts to pay expenses. In case of local expenses all companies require some physical cash balance and that’s why they withdraw cash from current accounts.

Hike in cash withdrawal limit from Current accounts is demanded by most customers. It is necessary for their day to day activities. Demonetization of old notes and problems with exchanging new Rs.2000 notes to buy products in market has posed a great problem in India.

Getting balance amount from Rs.2000 after paying for a product seemed to become difficult as no person has got change of Rs.100, Rs.50, Rs.20 .etc. in their hand.

How can a person who has current account in bank withdraw money and what procedures are there in doing it. There are only simple procedures in getting cash up to Rs.50000 per week from a Current account.

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All current accounts should have been operational for past 3 months. These accounts should have KYC details filled and given to respective banks which is confirmed. Filling out KYC – Know Your customer form is important for all savings, current bank accounts.

Using cheque withdrawal up to Rs.50000 can be withdrawn by a Current account holder in a week. New weekly limit starts from Saturday 19th or Monday 21st. It has to be confirmed by official circular of RBI or based on information from banks.

It is common that companies have many current accounts located at different bank branches. Total Deposits to all these current accounts should not exceed Rs.12.5 lakhs and source should be shown for any such exceeding amount in current accounts. Income Tax department is looking over all current accounts too, as there are complaints that unaccounted cash or black money is being deposited.