No cash withdrawal limit on savings account anymore

BT Online        Last Updated: March 14, 2017  | 12:03 IST
Cash withdrawal limit on savings account to go from March 13
Photo: Reuters

BJP's incredible wins in UP and other states have reconfirmed that Narendra Modi was able to grow out of the ill effects of demonetisation right on time. Now, with the withdrawal limit removed, the country's economy too will have a better chance at recovery from the slow down after demonetisation.

The Reserve Bank of India (RBI) on Feb 8 said that it had decided to enhance the withdrawal limit on saving accounts from February 20 and end the limit altogether from March 13. Following their promise, RBI has ended the withdrawal limit on savings accounts.

Keeping up with the pace of remonetisation, the RBI had decided to enhance the withdrawal limit on saving accounts in two phases. From February 20, 2017 the limit on cash withdrawal was to be enhanced to Rs 50,000 per week and from March 13, 2017, there would be no limit on cash withdrawals.

Earlier, the central bank had partially restore status quo ante on cash withdrawal limit for current accounts from February 1. The limit on cash withdrawals were brought in by the RBI after Prime Minister Narendra Modi announced demonetisation on November 8, 2016.

RBI said the currency in circulation was worth Rs 9.92 lakh crore as on January 27.

While addressing the press conference after RBI announced its decision to keep the repo rate unchanged, RBI Governor Urjit Patel said, "there is still scope for lending rates of banks to come down."

The Reserve Bank has officially removed all the limits on cash withdrawal from customer bank accounts.

While the apex bank removed the limits on withdrawals from ATMs on  February 1, it was still within the overall limit of Rs 24,000 a week  from savings bank accounts. The weekly withdrawal limit was earlier set at Rs 50,000 in case of current accounts.

Prime Minister Narendra Modi on November 8 announced demonetisation of Rs 500 and Rs 1,000 notes.

"All of us have to work shoulder to shoulder and create a prosperous, inclusive and corruption free India, " Modi said. 

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