Reserve Bank of India allows Rs 50,000 a week withdrawal from overdraft accounts

Mumbai, Maharashtra, IndiaUpdated: Nov 22, 2016, 06:06 AM IST
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In photo: Indian Economic Affairs Secretary Shashi Kant Das (L) and Governor of the Reserve Bank of India Urjit R. Patel hold up a sample of the new 500 INR note at a press conference in New Delhi on November 8, 2016. Photograph:(AFP)

Further relaxing cash withdrawal norms, the Reserve Bank of India has said that overdraft and cash credit account holders can now withdraw up to Rs 50,000 in a week.

Earlier, current account holders were allowed to withdraw up to Rs 50,000 in cash, in a week. 

"On a review, it has been decided to extend this facility to overdraft and cash credit accounts also," the central bank said. 

Accordingly, holders of current/overdraft/cash credit accounts, which are operational for the last three months or more, may now withdraw up to Rs 50,000 in cash, in a week. 

However, this enhanced limit for weekly withdrawal is not applicable for personal overdraft accounts. 

The Reserve Bank further said the Rs 50,000 withdrawals may be disbursed predominantly in Rs 2,000 denomination bank notes.

Government has taken several decisions to ease withdrawal restrictions for farmers, small traders, Group 'C' employees of Central Government including equivalent levels in the defence and paramilitary forces, railways and CPSEs in the aftermath of the cancellation of the legal tender character of the old Rs 500 and Rs 1,000 notes.