New RBI guidelines: This is how withdrawal limit can be extended to unlimited

New Delhi : Another guideline has been added by Reserve Bank of India to ease out complexities post demonetisation move by Government. But, it seems like common man will be more confused with the new announcement as a lot of maths will be indulged before withdrawing funds from your bank account.

From November 29, there will be no withdrawal limit if deposit has been made in the new currency notes. Currently, savings and current accounts are capped with a withdrawal limit of Rs 24000 and Rs 50000 per week respectively.

For example, if someone deposits valid legal tenders (Rs2,000, Rs 500, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5) of Rs 4,000,the withdrawal limit for that person would rise by Rs 4,000 over and above weekly withdrawal limit of Rs 24,000.   

New Notification highlights: 

1. It has been reported that certain depositors are hesitating in depositing their money into bank accounts due to capping on withdrawal limits.

2. As it is impeding active circulation of currency notes, it has been decided, on careful consideration, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits; preferably, available higher denominations bank notes of Rs 2000 and Rs 500 are to be issued for such withdrawals.

In similar terms, more you will deposit new currency, higher will be your withdrawal limit.

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