Our Recommendations :-
Follow FB Page Facebook

Cash Withdrawal Limit From ATM Increased To Rs. 50,000 From Feb 20, Limits End Mid-March

Cash Withdrawal Limit From ATM :  Starting February 20, you can withdraw upto Rs. 50,000 per week from your savings account, the Reserve Bank of India said today, adding that from March 13, all caps on access to cash will end.

For now, the withdrawal per week for every savings account cannot exceed Rs. 24,000. Any money you pull out using an ATM machine counts towards this.

Restricted access to cash was announced on November 8 by Prime Minister Narendra Modi when he disclosed that within hours, 500- and 1,000-rupee notes would be abolished. People were given till the end of December to deposit the outlawed notes in accounts or swap them for new ones. Deposits over 2.5 lakhs would be scrutinized for tax evasion, the government said later.

The PM’s demonetisation move was aimed at punishing tax evasion and corruption. Yesterday, he defended the timing of the reform – it was introduced in the middle of the festival and wedding season and as farmer were sowing their winter crop – and said that the notes ban could only have been induced when the economy was flourishing.
The cash shortage that encompassed India in the weeks after the high-denomination notes were banned resulted in long lines at banks and ATMs. 86%of the currency in circulation had been sucked out in one go. The new, security-enhanced 500 and 2,000-rupee notes were in short supply, adding to the crunch. The pain was especially sharp in rural India with its limited access to banks and its complete dependence on cash transactions. The government has said the move has helped steer the economy towards digital transactions.

Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  

However, critics point out that there is no estimate yet from the RBI on how much of the abolished money has been returned to banks -most reports say virtually all the banned notes were turned in, demolishing the theory that black or untaxed money would be destroyed by the reform.

Elections in five states including Uttar Pradesh are being seen as the first real test of the PM’s decision. He has, in one speech after another in the strategically vital state of Uttar Pradesh, stressed that the notes ban seeks to punish the corrupt and return to the poor “what is rightfully theirs.”

Goa and Punjab voted last weekend. Uttar Pradesh votes across seven days, starting Saturday. Results for all states, including Manipur and Uttarakhand, will be counted on March 11.

Cash withdrawal limit increased to Rs 50000 from 20th feb and removed from 13th March

Removal of limits on withdrawal of cash from Saving Bank Accounts

RBI/2016-17/224

DCM (Plg) 3107/10.27.00/2016-17

All Banks

Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  

Dear Madam / Sir,

Removal of limits on withdrawal of cash from Saving Bank Accounts

1. Please refer to our  circular DCM (Plg) 2905/10.27.00/2016-17 dated January 30, 2017 on the captioned subject.

2. In the wake of withdrawal of Specified Bank Notes (SBNs) since November 09, 2016 Reserve Bank had placed certain limits on cash withdrawals from Savings / Current / Cash credit /Overdraft accounts and withdrawals through ATMs. On a review of the pace of remonetisation, Reserve Bank partially restored status quo ante by removing the restrictions on cash withdrawals from Current / Cash credit / Overdraft accounts and ATMs effective January 31, 2017 and February 01, 2017 respectively. However, the limits on cash withdrawal from Savings Bank accounts continued to be in place.

3. In line with the pace of remonetisation, it has now been decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including accounts opened under PMJDY) in a two step process as under:

Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ₹ 50,000 per week (from the current limit of ₹ 24,000 per week); and

Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

An image of RBI headquarters in Mumbai (Photo: Kamlesh Pednekar)

 

From March 13, no curbs on cash withdrawal: RBI

The Reserve Bank of India is set to lift completely from March 13 the Cash Withdrawal Limit From ATM imposed in the wake of the November 8 demonetisation of high-value currency notes. The RBI said the remonetisation process was well under way.

From February 20, Cash Withdrawal Limit From ATM for savings account holders will increase to ₹50,000 a week from the existing ₹24,000.

This would mean savings account holders can withdraw ₹50,000 from automated teller machines in one go, if their banks allow it. Banks typically set daily limits for their customers for withdrawal from ATMs.

The RBI had earlier lifted cash withdrawal limits for current and cash credit accounts. Limits on ATM withdrawals were also changed to reflect the limits on withdrawals from bank counters at the time.

“In line with the pace of remonetisation, it has been decided to remove these limits in two stages,” RBI Deputy Governor R. Gandhi said in the post-policy interaction with the media. “Notes in circulation, as on January 27, was ₹9.92 lakh crore, comprising all denominations.”

Cash Withdrawal Limit From ATM had been capped at ₹2,000 from ATMs and ₹10,000 from banks as part of the initial step to withdraw high-value banknotes. The demonetisation had made more than 86% of the currency notes in circulation invalid.

“Notes in circulation, as on 27 January, 2017, was ₹9.92 lakh crore, comprising all the denominations,” Mr. Gandhi said.

On the number of new ₹500 and ₹2,000 notes in circulation, RBI Governor Urjit Patel said: “We usually don’t give that information out.”

RBI officials said it would take time to arrive at a figure of the amount of withdrawn currency notes that were deposited and hinted that the final figures would likely be available only after the deposit window for non-resident Indians was closed in June. “The work on the data compilation is going on,” Deputy Governor S.S. Mundra said. “There are 4,000 currency chests in the country and the RBI has chests in 19 places. The reconciliation process is currently going on. We expect to finish the process in some time. There could be some currencies in Nepal and Bhutan which we need to take into account. Also, the window [for NRIs to deposit] is open till June 30. After taking all this into account, we will definitely disclose the numbers.”

ATM Withdrawal Limit Raised To Rs 4,500 Daily Starting Jan 1: 10 Facts

Cash Withdrawal Limit From ATM Increased to Rs. 50,000 From Feb 20

Click here to see a list of India’s most popular CA CS CMA text books.

Click here to download FREE CA CS CMA Videos and books.

 

About Author: cakart

Leave a Reply

Your email address will not be published. Required fields are marked *

Chat with a counsellor
SIGN UP