Introduction
A viral claim suggesting that the RBI restricts cash withdrawal to ₹35,000 from bank accounts has caused concern among customers worried about accessing their own money. Many online posts and articles portray this as a broad new rule affecting all savings, current, or deposit accounts nationwide. However, as of December 31, 2025, no such general RBI restriction on cash withdrawals over ₹35,000 exists for regular bank accounts in India. The Reserve Bank of India removed all limits on cash withdrawals from savings accounts back in 2017, and there are no blanket caps today. Such restrictions only apply to specific troubled cooperative banks facing liquidity issues—not mainstream commercial banks. Misinformation like this often spreads quickly, so verifying through official RBI sources is crucial to avoid unnecessary panic.
Key Details and Fact-Check on the Viral Claim
Circulating stories describe an RBI directive supposedly limiting customers to ₹35,000 in cash withdrawals from bank accounts, with implications for daily banking and financial freedom. These often lack context and generalize isolated cases.
Actual RBI Guidelines on Cash Withdrawals (2025)
- No regulatory limit exists on over-the-counter cash withdrawals from fully KYC-compliant savings or current accounts. Customers can withdraw large amounts (even ₹1 crore or more) with advance notice to the branch for cash availability.
- ATM daily limits are set by individual banks (typically ₹20,000–₹50,000 per day), not a fixed RBI cap.
- For large cash transactions: PAN/Aadhaar is mandatory for deposits/withdrawals over ₹50,000 in a single day, and high-value dealings may trigger reporting under anti-money laundering rules.
- Post-demonetization temporary limits were fully lifted years ago.
When ₹35,000 Limits Do Apply
- RBI occasionally imposes restrictions under Section 35A of the Banking Regulation Act on weak cooperative or urban banks due to poor financial health. Recent examples include:
- Guwahati Co-operative Urban Bank (Assam) – capped at ₹35,000 per depositor.
- Older cases like Sri Guru Raghavendra Sahakara Bank (2020) also used ₹35,000 as a threshold.
- These are bank-specific measures to protect depositors and prevent runs—not nationwide policies affecting major banks like SBI, HDFC, or ICICI.
Why This Claim is Misleading
- No recent RBI circular or announcement on rbi.org.in mentions a general ₹35,000 withdrawal restriction.
- Viral articles often repurpose old or specific bank news without clarification, leading to widespread confusion.
- Similar fake alerts (e.g., account freezes over certain balances) have been debunked before.
Tips to Safely Manage Cash Withdrawals
- Use digital options like UPI, NEFT, or cheques for large transactions to avoid cash handling risks.
- For big withdrawals, inform your branch in advance.
- Check your bank’s app or website for personal ATM/over-the-counter limits.
- Always refer to official RBI notifications or PIB for banking updates.
Conclusion
The notion that RBI restricts cash withdrawal over ₹35,000 from bank accounts is unfounded for the vast majority of customers—no broad policy change limits access to your funds in regular accounts. Isolated restrictions on certain cooperative banks get exaggerated into national headlines, fueling unnecessary worry. India’s banking system prioritizes depositor protection (up to ₹5 lakh insured by DICGC), and RBI encourages transparent, digital transactions. Stay vigilant against misinformation—visit rbi.org.in or your bank’s official channels for accurate guidelines. Your money remains accessible as per standard banking practices.