What are exemptions on overdraft account withdrawal limits in Inida. All withdrawal after demonetization in India is based on weekly limits from 10-11-16. It’s expected to continue till 30th December 2016 or to further January 2017. Reserve Bank of India has allowed overdraft account withdrawal limits to Rs.50,000 per week.
It’s applicable only in accounts that are running for past three months. these 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.
It had been set to just Rs.20000 per week with daily limit of Rs.10,000 for first few days from 10th November. Later Reserve Bank of India increased withdrawal limit of over draft accounts to Rs.50,000. Current accounts were given a hike in withdrawal limits up to Rs.50,000 per week limit. Based on this RBI, Central government extended this withdrawal limit to overdraft and cash credit accounts too. After implementing it Rs 50,000 a week can be withdrawn from overdraft, cash credit accounts which are KYC compliant. 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.
Rupees Fifty Thousand weekly withdrawal limit is not available on personal overdraft accounts. Along with raising 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.
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 up to Rs.50,000 per week.
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. Rs.50000 is now allowed to be withdrawn in a single transaction or multiple withdrawals up to a maximum sealing amount of Rs.50000 per week.