**Policy Summary: Restoration of Cash Withdrawal Limits – RBI/2016-17/217**
This circular, RBI/2016-17/217 DCM (Plg) No. 2905/10.27.00/2016-17, issued by the Reserve Bank of India (RBI) on January 30, 2017, addresses the limits placed on cash withdrawals following the demonetization of Specified Bank Notes (SBN). The circular references previous circulars DCM (Plg) Nos. 1226, 1256, 1274, 1317, 1437, 2142, and 2559, issued between November 8, 2016, and January 16, 2017, which initially imposed restrictions on withdrawals.
Effective immediately on January 30, 2017, the circular removes all limits on cash withdrawals from Current Accounts, Cash Credit Accounts, and Overdraft Accounts. ATM withdrawal limits are removed effective February 1, 2017; however, banks retain the discretion to set their own operating limits, mirroring pre-demonetization practices. Limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.
The RBI urges banks to promote the use of digital payment methods to further the transition from cash to non-cash transactions.
The circular is addressed to the Chairman, Managing Director, and Chief Executive Officer of Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Urban Cooperative Banks, State Cooperative Banks, and District Central Cooperative Banks.
The issuing officer is P. Vijaya Kumar, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to by its acronym RBI in the document.
Public Sector Banks: A category of banks in India with government ownership.
Private Sector Banks: A category of banks in India that are primarily owned privately.
Foreign Banks: Banks that are incorporated in a country other than India but operate in India.
Regional Rural Banks: Regional Rural Banks (RRBs) are financial institutions in India operating at a regional level.
Urban Cooperative Banks: These are primary cooperative banks located in urban and semi-urban areas.
State Cooperative Banks: Apex cooperative banks at the state level in India.
District Central Cooperative Banks: Cooperative banks operating at the district level in India.
RBI/2016-17/217
DCM (Plg) No. 2905/10.27.00/2016-17 January 30, 2017
The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks
Dear Sir/Madam,
Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status
quo ante
Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016
placing limits on Cash withdrawals from bank accounts and ATMs in the wake of
withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent
circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14,
21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and
relaxations therefrom.
2. On a review of the pace of remonitisation, it has been decided to partially restore
status quo ante as under:
i. Limits placed vide the circulars cited above on cash withdrawals from Current
accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate
effect.
ii. The limits on Savings Bank accounts will continue for the present and are under
consideration for withdrawal in the near future.
iii. Limits vide the circulars cited above placed on cash withdrawals from ATMs stand
withdrawn from February 01, 2017. However, banks may, at their discretion, have
their own operating limits as was the case before November 8, 2016, subject to 2 (ii)
above.
3. Further, banks are urged to encourage their constituents to sustain the movement towards
digitisation of payments and switching over of payments from cash mode to non-cash mode.
4. Please acknowledge receipt.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager