RBI Restrictions on Withdrawal from Banks
THE Reserve Bank of India has issued new instructions yesterday on withdrawals from Banks and Financial Institutions.
1. In respect of 'Small Accounts', the prescribed limits/conditions shall not be breached and compliance therewith shall be strictly monitored. If any account is rendered ineligible for being classified as a small account due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for small accounts where the limits thereof have not been breached.
'Small Account' is defined as a savings account in which:
a. the aggregate of all credits in a financial year does not exceed rupees one lakh;
b. the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and
c. the balance at any point of time does not exceed rupees fifty thousand.
2. In respect of KYC compliant accounts where the required CDD procedure has been complied with, banks shall ensure compliance regarding quoting of PAN/obtaining of Form 60 for all transactions in terms of I.T.Rule 114 B which includes opening of accounts with banks, NBFCs, etc. No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with the requirements. To begin with, this rule shall be strictly applied in accounts where both the thresholds listed below are reached:
a. balance of rupees five lakh or more; and
b. the total deposits (including credits by electronic or other means) made after November 9, 2016, exceed rupees two lakh.
CDD means "Customer Due Diligence (CDD)" and that means identifying and verifying the customer and the beneficial owner using 'Officially Valid Documents' as a 'proof of identity' and a 'proof of address'.