GOI/ RBI Revises Limits for Exchange of old Currency Notes of Rs. 500 and Rs. 1,000 and Cash Withdrawal at ATMs/ Over the Counter by Savings Bank/ Current / Overdraft/ Cash Credit Account Holders
Govt. has decreased Limit from Rs. 4,500 to Rs. 2,000 for Exchange of old Currency Notes of Rs. 500 and Rs. 1,000. Besides, now Farmers can withdraw Rs. 25,000 per week, traders registered with APMC/ Mandis can withdraw Rs. 50,000 per week, Current/ cash credit/ overdraft holders can withdraw Rs. 50,000 per week. Besides in the case of marriage, withdrawal of cash upto Rs. 2.5 Lacs shall be permitted.
Daily limit of withdrawal from recalibrated ATMs was increased from ₹ 2000/- to ₹ 2500/- per day while retaining the same at Rs 2000 in case of other ATMs which banks until they are re-calibrated. Recalibration of ATMs is being closely monitored by RBI and substantial progress has been made. Based on review RBI has been decided to retain the limits unchanged till further instructions. Banks may continue to dispense ₹ 50 and ₹ 100 bank notes through the non-recalibrated ATMs until they are re-calibrated.
A. RBI Notification dt. 21 Nov. 2016: Traders registered with APMC Markets/ Mandis allowed to withdraw Rs. 50,000 per week
Presently all current account holders (CA/ CC/ OD) are allowed to withdraw, in cash, ₹ 50,000/- in a week from their current account subject to certain terms and conditions and the same facility has now been extended to the traders registered with APMC markets/ Mandis. Such traders will be permitted to draw up to ₹ 50,000/- from their current accounts provided that such accounts are compliant with the extant KYC norms and are operational for the last three months or more.
B. RBI Circular dt. 21 Nov. 2016: Overdraft/ Cash Credit Accounts allowed to withdraw Rs. 50,000 per week
Earlier RBI had allowed Current Account holders having account in operative conditions for last three months or more), to withdraw up to ₹ 50000 in cash, in a week. Now now this facility has been extended to Overdraft and Cash Credit accounts also, however subject to being an operational account for last three months or more.
This enhanced limit for weekly withdrawal is not applicable for personal overdraft accounts. Such withdrawals may be disbursed predominantly in ₹ 2000 denomination bank notes.
C. GOI Announcement dt. 17 Nov. 2016: revised withdrawal exchange limits
Govt. of India has reviewed the limits for exchange of old currency notes and withdrawal of cash at ATMs/ Over the Counter and has announced certain modifications in the existing limits as under:
i) The limit for over the counter exchange of Specified Bank Notes of Rs. 500 and Rs. 1,000 has been decreased from the existing ₹ 4,500/- to ₹ 2,000 w.e.f. 18 Nov. 2016 due to repeated visits for exchange of currency by some persons. Also it may be noted that option for exchange of old currency upto Rs. 2,000 is available only once per individual.
ii) Farmers have been permitted to withdraw Rs. 25,000 per week from their KYC compliant accounts, subject loan limit and other terms & conditions. This applies to KCC also.
iii) In the case of Marriage in Family, withdrawal of upto Rs. 2.5 lac is permitted based on self declaration and other details. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount and the account has to be KYC compliant. This limit of Rs. 2,50,000/- will apply separately to the girl’s family and the boy’s family. The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have to be submitted by the person to the effect that only one person from his/her family is drawing the amount. Please refer the post below for detais:
iv) Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs. 10,000/- in cash.
v) Traders registered with APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per week in cash from their KYC compliant accounts as in the case of business entities. This will enable these traders to pay wages and facilitate easy loading, unloading and other activities at the mandis.
D. RBI Notification dt. 13 Nov. 2016: revised withdrawal/ exchange limits
RBI has reviewed the limits for exchange of old currency notes and withdrawal of cash at ATMs/ Over the Counter and has announced certain modifications in the applicable limits as under:
i) The limit for exchange of Specified Bank Notes, over the counter has been increased from the existing ₹ 4000/- to ₹ 4500.
ii) The daily limit on withdrawal from ATMs has been increased from the existing ₹ 2000/- to ₹ 2500/- per day in the recalibrated ATMs, other ATMs will continue to dispense ₹ 50 and ₹ 100 bank notes until they are re-calibrated.
iii) The weekly limit of ₹ 20000/- for withdrawal from bank accounts has been increased to ₹ 24000 and the daily limit of ₹ 10000/- per day stands withdrawn.
3. Banks are advised to make arrangements for separate queues for Senior citizens and Divyang (disabled) persons. Similarly, separate queues should also be arranged for those who come to exchange SBN for cash and those who come to deposit into bank accounts.
4. Banks are advised to increase the Business Correspondents’ limit of dispensing cash to ₹ 2500/- for withdrawal from bank accounts.
5. The above modifications take immediate effect.