Can You Withdraw ₹1 Crore Cash at Once? Know RBI Rules, Bank Procedures and Tax Reporting Norms

Can You Withdraw ₹1 Crore Cash at Once? Here’s What RBI, Banks and Tax Rules Say

Many people wonder whether it is possible to withdraw a large sum like ₹1 crore in a single transaction from their bank account. The simple answer is yes, you can withdraw ₹1 crore cash at once. However, while the Reserve Bank of India (RBI) imposes no withdrawal cap, banks follow strict operational procedures, and large cash transactions fall under income tax reporting norms. Here is a detailed, structured explanation.

Does RBI Impose Any Limit on Cash Withdrawals?

No.
RBI does not impose any general upper limit on cash withdrawals from savings accounts.

• On 13 March 2017, RBI removed all withdrawal limits that were earlier imposed during demonetisation.

• RBI’s circular clarified that after this revision, account holders are free to withdraw any amount, depending on bank availability.

• Prior to that, the withdrawal limit was temporarily increased to ₹50,000 per week on 20 February 2017, but these restrictions no longer apply.

This means there is no RBI restriction on withdrawing ₹1 crore in cash.

Will the Bank Immediately Give You ₹1 Crore?

Not usually.
Even though RBI allows unlimited withdrawals, banks often cannot provide ₹1 crore instantly due to:

• Limited cash available at branch level

• Operational constraints

• Security and risk considerations

Most branches do not keep such high amounts of cash on a regular basis. Even large branches may not have ₹50 lakh available at all times.

What Process Do Banks Follow for Large Withdrawals?

1. Advance Written Notice Is Mandatory

You must inform the bank in writing before withdrawing a large sum like ₹1 crore. The bank requires time to arrange additional cash, usually from a currency chest.

2. Cash Availability Check

Branches typically maintain limited cash reserves. For amounts like ₹1 crore, cash must be specially transported, which requires time and approval.

3. Complete KYC Verification

The bank will verify your identity, account details, purpose of withdrawal, and conduct additional security checks if required.

4. Security Arrangements

For high-value cash withdrawals, the bank may:

• Suggest hiring private security

• Arrange a secure withdrawal area

• Allocate a specific time for cash handover

5. Possible Impact on Branch Cash Flow

If a branch releases ₹1 crore at once, it may not have sufficient cash for other customers, affecting daily operations. For this reason, scheduling the withdrawal in advance becomes essential.

Income Tax Rules for Large Cash Withdrawals

Withdrawing such large sums triggers mandatory reporting under Income Tax laws.

1. SFT Reporting (Statement of Financial Transactions)

Banks must report cash withdrawals exceeding ₹10 lakh in one financial year to the Income Tax Department.

A ₹1 crore withdrawal is automatically flagged in the SFT report.

2. Sections 269SS and 269ST

Although these sections focus on accepting or giving cash beyond prescribed limits, very large transactions may prompt the department to:

• Review your income profile

• Check your past ITR filings

• Seek justification for the withdrawal

3. Possible Scrutiny

Large cash movement draws attention and may lead to questions if your financial records do not justify the scale of withdrawal.

Conclusion

Withdrawing ₹1 crore cash at once is legally allowed since RBI imposes no withdrawal limit. However, it is not as simple as walking into a branch and collecting the money.

To withdraw ₹1 crore smoothly:

• Inform your bank in advance

• Allow time for cash arrangement

• Follow KYC and security procedures

• Be prepared for income tax reporting

Understanding these rules helps ensure that the process is smooth, compliant, and without unnecessary risk or scrutiny.