BackCash withdrawal rules: Where we stand, 100 days after demonetisation
Here are the RBI rules on cash withdrawal limits from ATMs and bank accounts as of 16 February
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New Delhi: The Narendra Modi government’s demonetisation drive to swap the old Rs500 and Rs1,000 currency notes completed 100 days on Thursday.
Since 8 November 2011, the Reserve Bank of India (RBI) placed restrictions on cash withdrawal from ATMs and bank branches along with rules governing deposits made in the demonetised currency notes. Between now and then, the RBI changed rules multiple times to manage the shortage of currency as well as plug the loopholes to bypass the rules.
Here are the latest RBI rules governing cash withdrawal and deposits from ATMs and bank accounts as of 16 February:
■ From 20 February, the weekly cash withdrawal limit on savings accounts at banks’ branches will be raised to Rs50,000 from the current Rs24,000 per savings account.
■ From 13 March, there won’t be any limit on cash withdrawal from savings bank accounts.
■ All cash withdrawal limits from ATMs have been removed.
■ All limits on cash withdrawal vis-à-vis current accounts has been removed.
■ The income tax department has asked banks to report deposits in any account aggregating Rs10 lakh in a year, as well as cash payments of Rs1 lakh or more on credit card bills. The department also reiterated its November 2016 instruction asking banks to report all cash deposits of Rs2.5 lakh or more made in one or more accounts of a person between 9 November and 30 December, 2016.
■ The last date for depositing old demonetised of Rs500 and Rs1,000 currency notes at banks was 30 December 2016. After the 30-December deadline, exchange of old currency notes are allowed only at RBI offices subject to regulations till 31 March.
However, confusion persisted over whether these old currency notes can be deposited at specified RBI branches until 31 March after submitting a declaration form as PM Modi announced on 8 November.
Also read: 100 days of demonetisation: A Mint reading list
Later, the RBI said that only Indians who were abroad during 9 November to 30 December 2016 have been given a three-month grace period till 31 March to deposit the scrapped notes, while for the non-resident Indians, or NRIs, it is six months till 30 June.
■ The government’s Specified Bank Notes Cessation of Liabilities Ordinance has made holding of more than 10 junked Rs500 and Rs1,000 currency notes a penal offence punishable with a minimum Rs10,000 fine.
■ The RBI has kept limits on prepaid payments services providers or e-wallets to load up to Rs20,000, instead of Rs10,000 before. The merchants can transfer funds from such payment protection insurances, or PPIs, to their own linked bank accounts upto Rs50,000 per month, without any limit per transaction.
■ Traders registered with the agricultural produce market committee, or APMC, and mandis can withdraw up to Rs50,000 a week from their current accounts.
■ Additional 60-day grace period for farmers to repay their crop loans and avail 3% interest subvention. Farmers are allowed to withdraw up to Rs25,000 a week from their loan or deposit accounts.
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