RBI Confirms Increased Withdrawal Limit For Overdraft Accounts To Rs. 50,000

November 21, 2016 18:03
RBI Confirms Increased Withdrawal Limit For Overdraft Accounts To Rs. 50,000

After banning the two big denomination notes of Rs. 500 and Rs. 1,000 the Reserve Bank of India has said that the limit of withdrawal of money from overdraft as well cash credit accounts to Rs. 50,000 per week.

Previously, only current account holder were allowed to withdraw up to Rs. 50,000 in cash, reports said.

The RBI said, “On a review, it has been decided to extend this facility to Overdraft and Cash Credit account also.”

Through this feature, account holder of overdraft, current and cash credit, which has been operational since last three months, are allowed to withdraw Rs. 50,000 in cash a week. The Bank, however, confirmed that this withdraw service will not be allowed for personal overdraft accounts.

It has also added that the withdrawals of Rs. 50,000 will be distributed predominantly in Rs. 2,000 denomination bank notes.

Farmers Allowed To Purchase Seeds With Old Rs. 500 Notes

The government has also made it clear that to support the farmers for the current rabi crops, the government is allowing them to purchase seeds in return of old Rs. 500 denomination bank notes. The Finance Ministry announced the decision by taking out a statement.

The government has added that the seeds can be purchased from the outlets of central or state governments, state-run enterprises as well as national or state seeds companies and the agricultural universities only after showing the valid proof of identity.

By Prajakt

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