Prime Minister Narendra Modi’s withdraw legal tender of currency notes Rs.500, Rs.1000 by demonetizing it. After this withdrawal limits have been implemented for withdrawing cash from various accounts from 10-11-2016. Latest RBI circular withdrawal deposit limit will be mentioned in it’s notifications. only as per the RBI Circulars which contains guidelines to follow, all banks in India can function.
There are different limits for withdrawing and depositing cash into savings, current, cash credit, over draft accounts. So knowing about these limits is necessary for all account holders. Weekly limits have been specified from 10th November 2016 and it expected to continue till 30 December 2016. Only based on currency availability circulation of cash can be ensured. RBI circular withdrawal deposit limit has been introduced to ensure that cash is equally distributed among all people. Many exemptions have been given regarding withdrawal of cash from bank accounts on strict rules as specified by Reserve bank.
New Rs.2000, Rs 500 notes are being distributed by Banks as given by Reserve Bank. It’s considered that currency circulation will become steady only in coming months. Till then it’s expected that currency withdrawal limit will continue to happen in India. With Indian Prime Minister Narendra Modi’s decision to demonetize currency black money, fake currency .etc. seems to be controlled to a great extent. In case of cash deposits in savings, current accounts there will be a limit up to which there will be no Income tax problems. On crossing these limits IT department will send notices inquiring about source.
PAN number is required to be quoted if cash deposits with banks, mutual funds, fixed deposits in Nidhi of non banking financial company, co-operative bank, post office .etc. exceeds Rs.50000. Also Aadhar number is linked in bank accounts to get details of deposits of a particular person doing transactions using different bank accounts.
In savings accounts total deposit amount limit from 8 November 2016 to 30 December 2016 should be Rs.2,50,000 (Two Lakh Fifty Thousand). In case of Current accounts this limit is Rs.12,50,000 (Twelve Lakh Fifty Thousand). On all bank accounts where cash deposit is made over this limit will be send notices by Income Tax department.
There has been withdrawal limit on all cash transactions through ATM counters, Withdrawal slips, Cash Cheque .etc. All online transactions like NEFT, RTGS, debit card, credit card transactions will not come into any limit, other than existing earlier to 8-11-16.
No ATM debit card transaction fees will be charged from 8-11-16 to 30-12-16. This is to avoid any extra fees on accounts of customers who have to make frequent ATM withdrawals based on daily limits.
Let us get into details regarding weekly, daily limits on cash withdrawals from ATM, Cheque .etc. for different types of bank accounts.
RBI Circular Withdrawal Deposit Limit November, December 2016
What are latest details mentioned in RBI circular Withdrawal Deposit limit in months of November, December 2016. Deposit and Withdrawal limits from accounts of all types started as a continuation of demonetization to fight black money. From 10th November 2016, banks started functioning with weekly limits on withdrawal of cash through ATM’s and bank accounts.
Before demonetization RBI has issued about Rs.14.5 lakhs crore worth currency in denominations of Rs.500, Rs.1000. After old currency notes were deposited in banks for past 14 days, it amounts only up to Rs. 5.5 lakhs crore. So where is rest of Rs.500, Rs.1000 notes. Correct figure will be know only after getting details from co-operative banks, religious institutions, finance companies .etc. by 30 December 2016.
Savings Account limits
If total deposited cash in savings account of a person from 10-11-16 to 30-12-16 exceeds deposit limit of Rs.2,50,000, IT department will issue notice. For all single time cash deposits per day exceeding Rs.50,000 PAN card copy and number should be given.
Current account limits
If total cash deposits in current accounts of a company from 10-11-16 to 30-12-16 exceeds deposit limit of Rs.12,50,000, Income Tax will issue notice to reveal source.
Cash credit account limits
Rs 50,000 cash can be withdrawn per week from Cash credit account.
Over Draft account limit
In Over Draft accounts , up to Fifty thousand rupees can be withdrawn per week.
ATM Withdrawal limit
ATM withdrawal limit is at present Rs.2500 per day which is inclusive of weekly limit withdrawal from banks. There was news that withdrawal limit may be increased to Rs.4000. It’s not implemented as there is limited availability of cash that can be dispensed through ATM’s. Weekly limit is Rs.24000 inclusive of cheque or direct withdrawal from bank branches.
Cheque Withdrawal limit
Cheque and withdrawal slips from bank can be used to directly withdraw cash from a bank account For this you have to bring your Passbook and fill in withdrawal slip or write a cash cheque. After checking your bank account and on complying with correct signature, identity verification through pass book, confirming your weekly withdraw-able amount, you will be issued cash. Weekly limit of Rs.24000 is applicable on withdrawals using cheques which is inclusive of any withdrawal from ATM in that week.
Current weekly withdrawal dates are from 18-11-2016 to 24 -11-2016.
Petrol Pumps Cash Withdrawal
Based on decision taken by Indian Government, RBI with All India Petroleum Dealers Association, now cash can be withdrawn from petrol pumps. Withdrawal of cash from petrol pumps by using ATM debit cards. Cash upto Rs.2000 per day can be withdrawn this way.
All RBI Circulars will be available at official website of Reserve Bank of India at https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx
Housewives, Casual workers Accounts
It was said in beginning of demonetization that savings accounts of Housewives, craftsmen, workers will not be checked by income tax. Later it was found that these accounts were being used by others to deposit black money. So if any suspicious thing is found in transactions of such person’s accounts, an investigation will be done to find it.
Cash Exchange Limit
Cash exchange limit of getting new currencies was Rs ,000 in beginning. It can be done only for one time by a person. later after few days this exchange limit was increased to Rs.4500. Now from 18-11-16 exchange limit was reduced to Rs.2000 for one time.
Farmers Withdrawal limit
Farmers were mainly affected by withdrawal limit because they required cash for various activities related to farming. Based on this Rs 25,000 per week was allowed to be withdrawn for sanctioned crop loans. Old notes can be used to purchase Rabi crop seeds by farmers.
Traders Cash Withdrawal
Registered traders in APMC market are withdraw up to a limit of Rs. 50,000 per week.
Central Government employees Withdrawal
Central government staff up to Group C can take advance salary up to Rs 10,000.
Up to Rs.2,50,000 (Two Lakhs Fifty Thousand) can be withdrawn a cash for conducting marriages in a family. There are certain conditions which have to be met for making withdrawals of money from accounts in this case. Only bride, groom or their parents can withdraw money from thier savings account provided there is necessary cash in bank account. Only those savings account which have KYC details given can make withdrawals of cash for wedding.
No ATM charges
There will be no ATM card charges on transactions from 8 November 2016 (8-11-16) to 30 December 2016 (30-12-16).