BackCash withdrawal limits to be removed from 13 March, says RBI
RBI said cash withdrawal limit s on savings bank accounts will be relaxed to Rs50,000 a week between 28 February and 13 March, after which it will be removed
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Mumbai: Cash withdrawal limits, currently in place for savings bank accounts will be removed in two stages, the Reserve Bank of India (RBI) said on Wednesday.
The limit will be enhanced to Rs50,000 per week starting 20 February and the restrictions will be abolished from 13 March, RBI said.
Savings account holders can currenntly withdraw only Rs24,000 per week.
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After the government’s demonetisation move on 8 November, where it invalidated old Rs500 and Rs1,000 currency notes with effect from 9 November, savings account holders were allowed to withdraw Rs2,000 a day from automated teller machines (ATMs). The cash withdrawal limit was increased to Rs2,500 a day later along with an increase in the currency swap limit to Rs4,500 from Rs4,000.
On 18 November, the government reduced the swap limit to Rs2,000 per person in order to allow more people to avail of the facility and reduce long queues. The government also allowed people to withdraw up to Rs2.5 lakh for expenses related to weddings from the bank account of one family member with a self-declaration that this facility will not be used by any other family member.
The government stopped the exchange of old currency notes over the counter from 25 November.
RBI ended cash withdrawal limits at ATMs from 1 February for current account holders but said the limits on savings bank accounts will continue.
The currency in circulation was worth Rs9.92 trillion as of 27 January, according to RBI.
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