Demonetisation: RBI extends withdrawal limits

RBI reveals that banks across the country have received Rs 8.45 lakh crore in the period between Nov 10 and Nov 27

In a major relief for the common man, the Reserve Bank of India (RBI) on Tuesday extended the withdrawal limit of cash from bank deposit accounts.

In a statement, the RBI said that such a decision had been made as certain depositors are hesitating to deposit their money into bank accounts in view of the current limits on cash withdrawals from accounts.

"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 ? 2000 and ? 500 are to be issued for such withdrawals," the statement said.

Earlier today, meanwhile, the RBI revealed that banks across the country have received Rs 8.45 lakh crore in the period between November 10th and November 27th following the implementation of demonetisation.

The RBI has also allowed lenders to put old 500 and 1,000 rupee currency notes in currency chests at the district level in view of mounting deposits due to demonetisation.

In a statement, the RBI said a currency chest operating at the point to be called Designated Chest -DC will be required to operate a separate vault - to be named Chest Guarantee Vault CGV as an extended arm of it.