Withdrawal limit from savings account set to Rs 50000.

Weekly cash withdrawal increases to Rs 50000

After 105 days of demonetisation, the Reserve Bank of India relieved the citizens as the weekly cash withdrawal limit was increased to Rs 50,000 from the savings account.

The announcement was made by RBI Deputy Governor R. Gandhi along with Governor Urjit Patel on the sixth bi-monthly monetary policy review. Earlier RBI relaxed withdrawal restrictions from current account, cash credit account and ATMs but there was a cap of Rs 50,000 for farmers a week and Rs 2.5 lakh for marriage.

The upper limit to withdraw money from savings account has been shifting upwards. From Rs 2000 a day to Rs 4500, it rose to Rs 10000 per day with a weekly ceiling of Rs 24000 implemented on January 30 and on Monday, February 20, 2017 it reached Rs 50000 weekly.

RBI had imposed withdrawal limits on banks and ATMs to handle cash crunch following demonetisation of Rs 500 and 1000 notes. Since November 8, 2016 the Government came up with a number of notifications and limits to equivalently distribute the new notes to the public.

As the government is pumping in new currency, the limits are gradually being erased to keep the pace of remonetisation. The government also announced that all the caps on money withdrawal will be removed from March 13, 2017.

News Source: NDTV, Financial Express

Image Source: HT Photo

Feedback welcome!