Telangana News

In an attempt to attract the deposits of the legal tender money into the banks, so that it can avail the same to the other needy, RBI said that people who deposit legal tender money in the banks, can enjoy beyond the withdraw limits.

For example, if a person deposits valid legal tenders (Rs 2,000, Rs 500, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5) of Rs 4,000, the withdrawal limit for that person would rise by Rs 4,000 over and above the weekly withdrawal limit of Rs 24,000.

For current accounts, the withdrawal limit is Rs 50,000 a week for small traders. RBI said that it has been reported that "certain depositors are hesitating" to deposit money into the bank accounts in view of the withdrawal limits.

"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 2000 and Rs 500 are to be issued for such withdrawals," RBI said.