Reserve Bank of India: Giving a sigh of relief, Reserve Bank of India has decided to remove the capping on a weekly cash withdrawal from saving accounts in two stages, starting from February 20.
“The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of remonetization, it has now been decided to remove these limits in two stages,” said RBI Deputy Governor R Gandhi.
Limits on cash withdrawal will be removed in two stages
In the first phase, the weekly withdrawal limit for saving accounts will be lifted up to Rs 50,000 from February 20. From March 13, there will be no limit on cash withdrawal from saving accounts announced by the RBI at Sixth bi-monthly monetary policy review.
Currently, the withdrawal limit is Rs 24000 for saving accounts.
The total currency worth Rs 9.92 lakh crore was in circulation on January 27, said RBI. The RBI further added that new notes of Rs 2,000 and Rs 500 are hard to copy. “The ones being found fake are photocopied and not printed versions of new notes,” the central bank said.
RBI directed banks to impose limit on cash withdrawal post demonetization
Reserve Bank of India has imposed the limit on cash withdrawal from bank accounts seeing demonetization of Rs 500 and Rs 1,000 notes on November 8. People were seen in the long queues at the Banks and ATMs post demonetization.
Late on January 30, RBI had stopped all limits on withdrawals from current accounts, cash credit accounts and overdraft accounts. All the central banks had also raised the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly account withdrawal limit to Rs 1 Lakh.
Following RBI directions all the banks had been raised the maximum limit for weekly withdrawal from bank accounts to 24,000 from 20,000 in November.