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RBI comes up with new rules for cash withdrawal

RBI rules

New Delhi: In its series of rules after the demonetisation move by the government, RBI has issued a fresh rule again stating certain restrictions on withdrawal if more than Rs 2 lakh has been deposited after November 9 in an account which has a balance of over Rs 5 lakh.

As per the new rule, withdrawal or transfer of funds will not be permitted in accounts without quoting of PAN and Form-60, for persons not having PAN.

The notification was followed after noticing that strict compliance with KYC (Know Your Customer) provisions was not ensured in some cases. RBI in its statement has advised all the NBFCs to ensure compliance regarding quoting of PAN/obtaining of Form 60 for all transactions and further as per norms, no debit transaction, transfer or otherwise would be allowed in accounts which do not comply with the above mentioned requirements.

Initially the rule would be applicable in accounts where the balance in account would be more than Rs 5 lakh or the total deposits including credits by electronic or other means has not exceeded Rs 2 lakh after the date of November 9, 2016. It also further clarified that said if any account is rendered ineligible for being classified as a small account due to credits or balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for small accounts.

As under earlier notification, the monthly limit for withdrawal and transfer from a small account will sustain at Rs 10,000 and as such aggregate of all credits during a financial year cannot exceed Rs 1 lakh.

Basic Savings Bank Deposit Accounts (Jan Dhan accounts) would not be under Know Your Customer(KYC) compliant accounts and would be treated as small accounts.

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