If a recent Reserve Bank of India (RBI) notification is any indication, there is no limit on the amount one can withdraw from his or her bank account; at least that is what one can reasonably infer.
The central bank's recent communication to banks on Monday (November 28) suggests so. It is not clear whether the limits for marriages and special category customers such as farmers and traders also stands withdrawn.
"It has been reported that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.
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 2,000 and Rs 500 are to be issued for such withdrawals," the RBI said on November 28, 2016.
The current limit for withdrawal is Rs 24,000 per week, according to the apex bank's November 25 notification.
"The banks are, hereby, advised that they may continue to allow their existing customers to withdraw cash from their accounts upto Rs 24,000/- per week, till further instructions. The said limit include withdrawals from ATMs as stipulated in our circular DCM(Plg) No. 1304/10.27.00/2016-17 dated November 20, 2016," the bank had said.
In 18 days (November 10 to 27), banks have received Rs 8.44 lakh crore (Rs 8.11 lakh crore in deposits and Rs 33,948 crore for exchange), the RBI said. Withdrawals stood at Rs 2.16 lakh crore, both from ATMs and bank branches.
Prime Minister Narendra Modi had announced on November 8 in a televised address that Rs 500 and Rs 1,000 currency notes have been withdrawn with immediate effect. After a day's bank holiday, the process of exchanging/depositing the old notes commenced from November 10, 2016.
In a related development, the government on Tuesday reiterated that the last date for depositing the demonetised Rs 500 and Rs 1,000 notes will remain as December 30 and there are no plans to extend the deadline.