RBI said it has been reported that ‘certain depositors are hesitating’ to deposit their monies into bank accounts in view of the current limits on cash withdrawals. Photo: MintMumbai: Nudging retailers such as malls and shop owners to deposit their daily collections with banks, RBI has said they would be allowed to withdraw the deposited sum in Rs2,000 and Rs500 notes, irrespective of the existing withdrawal limits. The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate cash crunch following the demonetisation of old Rs500 and Rs1,000 banknotes. It added that preferably, available higher denominations bank notes of Rs2,000 and Rs500 are to be issued for such withdrawals. Of this, the exchange of old Rs500 and Rs1000 banknotes amounted to Rs33,948 crore and deposits amounted to Rs8,11,033 crore.

Source: Mint November 29, 2016 10:20 UTC