The Reserve Bank of India (RBI) on Monday notified a relaxation on the withdrawal limit of deposits from bank deposit accounts. It announced that it will extend the withdrawal amount over and above the Rs.24,000 weekly limit.
“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,” the RBI said in a statement.
The withdrawals could be preferably permitted in “available higher denominations bank notes of Rs.2,000 and Rs.500,” it said. The move will encourage small businesses such as shopkeepers to deposit cash in legal tender which they can fully withdraw.
In wake of this situation, the central bank said that, “It has been decided to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond current limits.”