RBI extends weekly withdrawal limit for legal tender depositors

Mumbai: Giving some relief to those who are depositing valid currency notes in their bank accounts, the Reserve Bank of India (RBI) on Monday extended their withdrawal limit by an additional Rs. 4,000 per week apart from the weekly limit of Rs 24,000.

The weekly limit, however, remains same (Rs 24,000) for those depositing scrapped currency notes of Rs 500.

The central bank said that it had been informed that many people were hesitating to deposit their money in their bank accounts due to the certain limits on cash withdrawals.

"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," RBI said in a notification.

For example, if you have submitted Rs 10,000 in your account of which Rs 6,000 is old currency notes and Rs 4,000 is in new or legal currency, you can withdraw that additional Rs 4,000 above your Rs 24,000 weekly limit.