What are exemptions on overdraft account withdrawal limits in Inida. All withdrawal after demonetization in India is based on weekly limits from 1-2-2017. It’s expected to continue till 30th December 2016 or to further January 2017. Reserve Bank of India has removed limits on overdraft, cash credit account withdrawals. ATM withdrawals will have no limit except weekly limit of Rs.24,000. Soon this limit will be removed by Reserve Bank of India (RBI) as cash availability increases.
To help with business it was decided by RBI to remove limit on withdrawal amounts from cash credit, current accounts .etc. This will be applicable from Wednesday, 1st February 2017. All accounts should have Know Your Customer (KYC) details filled up as required by Reserve Bank to be able to withdraw up to this amount. Those accounts which do not have KYC or have not reached 3 months will be allowed to withdraw only smaller amounts at present per week. There had been strict withdrawal limits for all types of accounts in India after demonetization of old currencies.
ATM limit had been set to just Rs.24000 per week with no daily limit on accounts from 1st February 2017. There is limited currency availability in India, which is causing such difficulties in setting withdrawal limits. New Rs.500 notes are being distributed through ATM’s and bank branches. Removing withdrawal limits of overdraft accounts, necessary actions have been taken by Central Government of Inida to reduce problems of common like farmers and other needy sectors. Now only savings accounts have weekly limit on amount that can be withdrawn. This limit will be soon removed in coming weeks as new Rs.1000 notes will be distributed.
Registered traders and farmers are given special withdrawal limits to reduce their problems.
Employees of Central Government in category Group C including defense, para military services, railways .etc. will get salary payment as cash without crediting in bank account.
Overdraft accounts are popular in India which is commonly use by business men and companies in regard to their urgent trade needs. There has been very low withdrawal limit set of Overdraft accounts till recently.
This Overdraft account withdrawal limits have been increased recently by RBI circular notification. With this recent decision Overdraft accounts will be allowed to withdraw amounts without any limit as applicable before.
All banks functioning in India can only function based on Reserve Bank of India guidelines and circulars. This was why Over draft accounts were allowed to withdraw only a limited amount. From 1-2-2017 all these withdrawal limits have been removed with immediate effect.