RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status quo ante

RESERVE BANK OF INDIA
www.rbi.org.in

RBI/2016-17/217
DCM (Plg) No. 2905/10.27.00/2016-17

January 30, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks

Dear Sir/Madam,
Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status quo ante

Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 placing limits on Cash withdrawals from bank accounts and ATMs in the wake of withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14, 21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and relaxations therefrom.

2. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:

Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.

The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.

Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.

3. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.

4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

Withdrawal of Legal Tender Character of existing Rs.500/- and Rs.1000/- Specified Bank Notes (SBNs) - Cash withdrawal for purpose of celebration of wedding

Withdrawal of Legal Tender Character of existing Rs.500/- and Rs.1000/- Specified Bank Notes (SBNs) - Cash withdrawal for purpose of celebration of wedding

RBI/2016-17/145
DCM (Plg) No.1320/10.27.00/2016-17

November 21, 2016

The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks/ Private Sector Banks/ Foreign Banks
Regional Rural Banks / Urban Co- operative Banks / State Co-operative Banks

Dear Sir,
Withdrawal of Legal Tender Character of existing Rs. 500/- and Rs. 1000/- Specified Bank Notes (SBNs) - Cash withdrawal for purpose of celebration of wedding

Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject.

2. With a view to enable members of the public to perform and celebrate weddings of their wards it has been decided to allow higher limits of cash withdrawals from their bank deposit accounts to meet wedding related expenses. Yet, banks should encourage families to incur wedding expenses through non-cash means viz. cheques /drafts, credit/debit cards, prepaid cards, mobile transfers, internet banking channels, NEFT/RTGS, etc. Therefore, members of the public should be advised, while granting cash withdrawals, to use cash to meet expenses which have to be met only through cash mode. Cash withdrawals shall be subject to the following conditions:

i. A maximum of Rs.250000/- is allowed to be withdrawn from the bank deposit accounts till December 30, 2016 out of the balances at credit in the account as at close of business on November 08, 2016.

ii. Withdrawals are permitted only from accounts which are fully KYC compliant.

iii. The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.

iv. Withdrawals can be made by either of the parents or the person getting married. (Only one of them will be permitted to withdraw).

v. Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.

vi. The application for withdrawal shall be accompanied by following documents:

• An application as per Annex
• Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as Marriage hall booking, advance payments to caterers, etc.
• A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account. The list should indicate the purpose for which the proposed payments are being made

3. Banks shall keep a proper record of the evidence and produce them for verification by the authorities in case of need. The scheme will be reviewed based on authenticity/ bona fide use thereof.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Encl: As above

Authority: www.rbi.org.in
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