RBI relaxes withdrawal norms, nudges retailers to deposit cash
The RBI move aims to discourage hoarding of valid currency notes and increasing its circulation to mitigate cash crunch following the demonetisation
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Mumbai: Nudging retailers such as malls and shop owners to deposit their daily collections with banks, RBI has said they would be allowed to withdraw the deposited sum in Rs2,000 and Rs500 notes, irrespective of the existing withdrawal limits.
The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate cash crunch following the demonetisation of old Rs500 and Rs1,000 banknotes.
In a notification, the Reserve Bank of India said 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.
“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 29 November 2016 beyond the current limits,” RBI said.
It added that preferably, available higher denominations bank notes of Rs2,000 and Rs500 are to be issued for such withdrawals.
People have exchanged and deposited about Rs8.45 lakh crore worth of scrapped Rs500 and Rs1,000 banknotes at different banks till 27 November following demonetisation of the high value currency on 9 November.
The banks also disbursed over 2.16 lakh crore over the counter and via ATMs from 10-27 November. Of this, the exchange of old Rs500 and Rs1000 banknotes amounted to Rs33,948 crore and deposits amounted to Rs8,11,033 crore.