RBI tells retailers not to hesitate in depositing cash; relaxes withdrawal norms

In a bid to encourage retailers to deposit their daily cash collection in banks, the Reserve Bank of India (RBI) relaxed withdrawal norms for them.

In a notification, the RBI stated: "certain depositors are hesitating" to deposit their monies into bank accounts in view of the current limits on cash withdrawals. 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.”

The statement was made so that retailers do not hoard valid currency notes.

People have exchanged and deposited about Rs 8.45 lakh crore worth of scrapped Rs 500/1,000 notes at different banks till November 27 following demonetisation of the high value currency on November 9.

The banks also disbursed over 2.16 lakh crore over the counter and via ATMs from November 10-27. Of this, the exchange of old Rs 500/1000 notes amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore.