Mumbai, Nov 29 (KNN) In a move that will encourage MSMEs such as shopkeepers to deposit cash in legal tender which they can fully withdraw, the Reserve Bank of India (RBI) has said that if deposits had been made in legal tender, then depositors could withdraw that amount over and above the Rs.24,000 weekly limit.

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 from accounts.”

“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 RBI said in a statement.

The withdrawals could be preferably permitted in “available higher denominations bank notes of Rs.2,000 and Rs.500,” it said.

The move is likely to help the small traders, daily wage earners and micro entrepreneurs deposit the money which they can fully withdraw.