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RBI relaxes withdrawal norms, encourages retailers to deposit cash

The decision is aimed at increasing valid currency notes circulation to mitigate cash crunch

Press Trust of India  |  Mumbai 

Reserve Bank of India
Reserve Bank of India

Nudging such as and shop owners to deposit their daily collections with banks, said they would be allowed to withdraw the deposited sum in Rs 2,000 and Rs 500 notes, irrespective of the existing limits.

The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate following the demonetisation of old 500 and 1,000 rupee notes.

In a notification, the Reserve Bank of India said it has been reported that "certain depositors are hesitating" to deposit their monies into bank accounts in view of the current limits on cash withdrawals.

"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," said.

It added that preferably, available higher denominations bank notes of Rs 2,000 and Rs 500 are to be issued for such withdrawals.

People have exchanged and deposited about Rs 8.45 lakh crore worth of scrapped Rs 500/1,000 notes at different till November 27 following demonetisation of the high value currency on November 9.

The also disbursed over 2.16 lakh crore over the counter and via ATMs from November 10-27. Of this, the exchange of old Rs 500/1000 notes amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore.

RBI relaxes withdrawal norms, encourages retailers to deposit cash

The decision is aimed at increasing valid currency notes circulation to mitigate cash crunch

The decision is aimed at increasing valid currency notes circulation to mitigate cash crunch Nudging such as and shop owners to deposit their daily collections with banks, said they would be allowed to withdraw the deposited sum in Rs 2,000 and Rs 500 notes, irrespective of the existing limits.

The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate following the demonetisation of old 500 and 1,000 rupee notes.

In a notification, the Reserve Bank of India said it has been reported that "certain depositors are hesitating" to deposit their monies into bank accounts in view of the current limits on cash withdrawals.

"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," said.

It added that preferably, available higher denominations bank notes of Rs 2,000 and Rs 500 are to be issued for such withdrawals.

People have exchanged and deposited about Rs 8.45 lakh crore worth of scrapped Rs 500/1,000 notes at different till November 27 following demonetisation of the high value currency on November 9.

The also disbursed over 2.16 lakh crore over the counter and via ATMs from November 10-27. Of this, the exchange of old Rs 500/1000 notes amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore.
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Business Standard
177 22

RBI relaxes withdrawal norms, encourages retailers to deposit cash

The decision is aimed at increasing valid currency notes circulation to mitigate cash crunch

Nudging such as and shop owners to deposit their daily collections with banks, said they would be allowed to withdraw the deposited sum in Rs 2,000 and Rs 500 notes, irrespective of the existing limits.

The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate following the demonetisation of old 500 and 1,000 rupee notes.

In a notification, the Reserve Bank of India said it has been reported that "certain depositors are hesitating" to deposit their monies into bank accounts in view of the current limits on cash withdrawals.

"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," said.

It added that preferably, available higher denominations bank notes of Rs 2,000 and Rs 500 are to be issued for such withdrawals.

People have exchanged and deposited about Rs 8.45 lakh crore worth of scrapped Rs 500/1,000 notes at different till November 27 following demonetisation of the high value currency on November 9.

The also disbursed over 2.16 lakh crore over the counter and via ATMs from November 10-27. Of this, the exchange of old Rs 500/1000 notes amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore.

image
Business Standard
177 22

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