The Reserve Bank of India (RBI) on Monday notified a relaxation on the withdrawal limit of deposits from bank deposit accounts. On its website, it announced that it will extend the withdrawal limit for deposits that have been made in notes that are presently legal.
The apex bank has made this move as depositors are hesitating to deposit their money in banks due to the limit on cash withdrawals. On November 8, Prime Minister Narendra Modi announced the demonetization of Rs 500 and Rs 1000 notes as legal tender and put limits on the daily and weekly withdrawals from banks. Subsequently, the daily withdrawal limit was waived off and a weekly limit of Rs 24,000 was imposed on cash withdrawals from banks till December 30.
The reserve bank announced that the current limits on cash withdrawals was disrupting the circulation of currency notes in the economy. In wake of this situation, the central bank said that, “It has been decided to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond current limits.” It further added that preferably available higher denomination banks notes of Rs 500 and Rs 2000 are to be issued for such withdrawals.