The Reserve Bank of India or RBI today said that the cash withdrawal limits on savings accounts would be lifted in two phases. From February 20, 2017, customers would be able to withdraw Rs 50,000 per week as against the current limit of Rs 24,000 per week. There would be no cash withdrawal limits from March 13 on savings accounts. "It has now been decided to remove these (cash withdrawal ) limits in two stages. Effective from 20th February, 2017, limits on cash withdrawals from savings accounts would be enhanced from Rs 24,000 to Rs 50,000 per week. Effective from 13 March, 2017, there would be no limits prescribed by the RBI on cash withdrawals from savings accounts,: said RBI deputy governor R Gandhi.
Withdrawal of money from bank accounts was curbed amid a massive cash crunch that followed Prime Minister Narendra Modi's sudden announcement on November 8 last year scrapping 500 and 1000 rupee notes.
The move, aimed at eliminating corruption and black money took out 86 per cent of the cash in circulation at the time or about 15.44 lakh crore. The RBI has sid it is printing new currency at break neck speed to overcome the shortage of cash.
The RBI chief Urjit Patel earlier this month told a parliamentary panel that the central bank has issued Rs. 9.2 lakh crore of new currency, thus replacing 60 per cent of demonetised currency.
The RBI had initially set a cash withdrawal limit of Rs. 50,000 from current accounts which was later increased to Rs. 100,000 a day.
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