RBI relaxes withdrawl limits for deposits made in legal tender notes

RBI has relaxed weekly withdrawal limits in cases where deposits are made in current legal tender notes and said, the decision has been taken as certain depositors are hesitating to deposit money in view of current limits on cash withdrawals.

The withdrawal limit will increase by the amount of deposits made in accounts in legal currency. The apex bank said, preferably, available higher denominations notes of 2,000 and 500 rupees may be issued for such withdrawals.After the withdrawal of legal tender character of old 500 and 1,000 rupee notes from the 9th of this month, a 24,000 rupees per week limit, including from ATM, on withdrawal was put in place. For current accounts, the



withdrawal limit is 50,000 rupees a week.

RBI has also said, people have exchanged and deposited about 8.45 lakh crore rupees worth of scrapped 500 and 1,000 rupee notes at different banks between 10th and 27th of this month. The apex bank also said, banks disbursed over 2.16 lakh crore rupees over the counter and via ATMs, so far.

RBI had made arrangements for exchange and deposit of such notes. The facility was available at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Co-operative Banks.