Hike in cash withdrawal limits

Hike in the cash withdrawal limits – Increase in ceiling limits

by Shruti Agarwal on Basic Finance, Miscellaneous

Undoubtedly people across the country are facing immense trouble in exchanging/withdrawing money.

But this a great move, and we should remember one thing, that the construction of a new house takes time, but once the foundations are strongly laid, it gives you shelter for a lifetime.

Reserve Bank of India (RBI) has strictly instructed the banks to execute the process of notification in the smoothest manner.

Seeing at the troubles faced by the common public, Government has enhanced/hiked the widened “the existing facilities to exchange/ deposit the specified bank notes and withdraw cash from their accounts” vide notification issued by RBI Notification dated November 14, 2016.

Further, “banks are advised to put in place the following additional measures so that member public enjoy as much convenience as possible in availing the facility.”

In our previous blogs we read about the exchange/ withdrawal facilities based on the previous notification, also we read about the requirement of identification proofs in our blog 

In this blog, we will know about the hiked withdrawal limits and few important answers to your questions on the same:

Limit enhanced from Rs. 2000/day to Rs. 2500/-

Now you must be wondering that though the limit has been enhanced from Rs. 2000 to Rs. 2500/-, you may not be able to withdraw more than Rs. 2000/day.

The reason is that the ATMs are being recalibrated, which means that they are being arranged or composed to meet the enhanced limits.

Know MoreCardless Cash Withdrawal at ATM!

In this case, all the existing ATMs are set for the withdrawal limit of Rs. 2000/- and the recalibrated ones will have the enhanced limit of Rs. 2500/-.

This facility is already available at certain locations and will soon be available at all ATMs.

Hence, those ATMs that are not recalibrated will dispense Rs. 2000/- only.

Limit enhanced for cash exchange from Rs. 4000/- to Rs. 4500/-

This means the limit to cash withdrawal of existing notes ( old notes) is enhanced from Rs. 4000/- to Rs. 4500/-Now you will be able to exchange upto Rs. 4500/- over the counter and in case you need to exchange more than that, you will get the credit of the same in your bank account.

In case you don’t have a bank account, you can always go to your nearest branch for opening the bank account with the required KYC documents.

Banks are providing additional staffs/ representatives for helping the public in this regard.

  • Up to Rs. 4500 cash exchange can be made at any bank, even though you may not have an account in the particular bank account/ branch with a valid ID proof
  • In case you want to withdraw funds over and above Rs. 4500/-*, which is possible only via credit to your bank account, you need to go to the branch where you have the account or any branch of the same bank where you have the account.

Cash withdrawal limits of Rs. 10,000/- withdrawn and enhanced to Rs. 24000/-

The ceiling limit of Rs. 10,000/- on weekly withdrawal has been withdrawn and the weekly limit is now enhanced to Rs. 24000/-

This means that you can withdraw through cheques/ withdrawal slips/ ATMs/ over the counter up to Rs. 24000/- weekly.

This limit is applicable till 24.11.2016 and is subject to further revision.

Queue management

Instructions have been given to organize the arrangements of withdrawal in a well-defined manner. Separate queues for senior citizens and disabled, for those who are exchanging cash, for those we who are withdrawing from accounts etc.

What do you mean by Proof of identity to be carried along

The following documents shall be considered as valid proof of identity:

  • Aadhaar Card,
  • PAN Card,
  • Voter ID Card,
  • PassPort,
  • Driving License,
  • NREGA Card,
  • Identity Card Issued by Government Department,
  • Public Sector Unit to its Staff.

Bottomline:

The cash withdrawal limits are currently under review so as to provide minimal hindrances to the public at large.

This attempt is a tremendous effort brought by our Government to wash away the flow of fake currency notes.

It is an attempt to help common people like us, who are unable to differentiate between the fake currency and the original ones.

Any change definitely calls for resentment, but such a positive change is definitely a welcome move.

Further, RBI has insisted “that public need not be anxious; need not come over to banks repeatedly to draw and hoard; Cash is available when they need it.”

You can also read our other related articles.

Happy Learning!

 


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