RBI/2016-17/124

DCM (Plg) No.1256/10.27.00/2016-17

November 11, 2016

The Chairman / Managing Director/ Chief Executive Officer,

Public Sector Banks/ Private Sector Banks / Foreign Banks/

Regional Rural Banks / Urban Cooperative Banks/

State Cooperative Banks

Dear Sir

Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes –Limit for Withdrawal of Cash

Please refer to our circular DCM (Plg) No.1251/10.27.00/2016-17 November 10, 2016 on the captioned subject and see the following additional instructions in this regard:

2. Governments Departments may be allowed to draw cash beyond the stipulated limit of ₹ 10,000/-, in exceptional cases, only on production of evidence justifying their cash requirements in writing, at the discretion of an officer in the rank of General Manager and above.

Yours faithfully

(P Vijaya Kumar)

Chief General Manager

Withdrawal of legal tender: banks must apply cash withdrawal limits; limited discretionary excess for government on written justification. Withdrawal of Legal Tender Character of specified high-denomination banknotes is implemented as an administrative currency measure affecting cash acceptance and withdrawal limits. A limited exception allows Government departments to withdraw cash beyond the general ceiling in exceptional cases, only on written justification of need and at the discretion of a senior bank officer of General Manager rank or above.