1. Demonetisation: RBI allows Rs 50K per week withdrawal from overdraft accounts

Demonetisation: RBI allows Rs 50K per week withdrawal from overdraft accounts

The recent enhanced withdrawal limit is not applicable for personal overdraft accounts and the withdrawal may be further disbursed in Rs 2,000 denomination bank notes.

By: | Updated: November 21, 2016 3:34 PM
RBI, Reserve Bank of India, Demonetisation, Overdraft Account, Cash Withdrawal Limit, Cash Limit, Cash Credit, Note Ban, Currency Chaos, Demonetisation News The recent enhanced withdrawal limit is not applicable for personal overdraft accounts and the withdrawal may be further disbursed in Rs 2,000 denomination bank notes. (Source: PTI)

In a recent announcement, the Reserve Bank of India has today said that all overdraft and cash credit holders will now able to withdraw up to Rs 50,000 in a week. As per the advancement, the holders of current, overdraft and cash credit accounts operational from past three months and more will now be able to withdraw up to Rs 50,000 cash in a week. As per the RBI, Indian banks have till now disbursed a total of about Rs 1.03 lakh crore cash post the note ban announcement. People have deposited Rs 5.12 lakh crore in banks and exchanged old currency notes worth Rs 33,000 crore since the demonetisation drive.

However, the recent enhanced withdrawal limit is not applicable for personal overdraft accounts and the withdrawal may be further disbursed in Rs 2,000 denomination bank notes. Apart from the recent announcement, the government has taken various steps to increase the withdrawal limitations especially for farmers, small traders and Group C employees of the government including equivalent levels in defense and para military forces, railways and CPSEs after scrapping legal tender character of Rs 500 and Rs 1,000 notes.

Also the government has announced that farmers can use the banned Rs 500 and Rs 1,000 note currencies to buy seeds from outlets owned by the central and the state government. Seeds can be purchased to outlets including – Public Sector Units, National or State Corportation, Central or State Agriculture Universities and the ICAR. For purchasing seeds from the above mentioned outlets farmer will have to produce their proof of identity to use the scrapped currencies.

The government is doing the maximum possible to ease the inconvenience caused to the common man and focus more on rural areas where accessibility to banks and ATMs are comparatively low.

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