No restriction on cash withdrawal from March 13: RBI

The latest decision of the Reserve Bank of India (RBI) can make the Indians breathe a sigh of relief after a long time. RBI on Wednesday announced that all restrictions on cash withdrawal from savings bank account have been lifted.

 

This new rule will be effective from March 13, 2017. However, this process will be implemented in two phases. Initially, the cash withdrawal limit has been increased to ₹ 50,000 from the previous ₹ 24,000 from February 20.   

 

Let us take a look at the latest set of RBI’s rules on cash withdrawal and deposits:

 

## No cash withdrawal limits in ATMs.

 

## The cash withdrawal limit has been increased to ₹ 50,000 from the previous ₹ 24,000 from February 20. From March 13, all limits on cash withdrawal from savings bank accounts will be lifted.

 

## Limit on cash withdrawal from current accounts has also been removed.

 

##The tax department has ordered the banks to report about deposits above ₹ 10 lakh in a calendar year in any account, as well as cash payments of ₹ 1 lakh or more for credit card bills.

 

## The government’s Specified Bank Notes Cessation of Liabilities Ordinance has now made holding of more than 10 junked demonetised notes a penal offence punishable with a minimum fine of ₹ 10,000.

 

## RBI has increased its limit on Prepaid Payments Services providers or e-wallets to load up to ₹ 20,000, instead of ₹ 10,000 before.

 

## Traders registered with the APMC and mandis can withdraw up to ₹ 50,000 per week from their current accounts.

 

## Farmers got an additional 60-day grace period to repay their crop loans and also avail 3% interest subvention. The Farmers have also been allowed to withdraw up to ₹ 25,000 per week from their loan or deposit accounts.