RBI Removes Limits for Cash Withdrawals from Deposits made in New Currency

RBI Removes Limits for Cash Withdrawals from Deposits made in New Currency from 29 Nov. 2016

In view of cash withdrawal limit fixed by Govt. post demonetization, it is noticed that certain genuine depositors are hesitating in banking/ depositing cash in bank, therefore RBI has decided to allow withdrawals of cash from deposits made with new currency notes from 29 Nov. 2016 without any limits of Rs, 2,000/ 2,500 per day or Rs. 24,000 per week, etc. These limits are actually impeding active circulation of currency notes and hence RBI has reviewed the matter. The Banks however may issue available higher denominations bank notes of ₹ 2000 and ₹ 500 for such withdrawals.

As the cash withdrawal limit has been removed, business community is likely to be benefited the most from this relaxation given by RBI, besides direct/ indirect benefits to others.

RBI Circular dt. 28 Nov. 2016

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