RBI removed the limits on cash withdrawals from savings bank account post demonetisation of high denomination currency notes ended on Monday.
The Reserve Bank of India (RBI) gave Indians a Holi gift and removed all the restrictions on saving bank cash withdrawals from banks as well as ATMs put after the note ban of Rs500, Rs1000 notes. On February 20, the RBI had said that the limit of withdrawal per week from saving bank accounts would be expanded to Rs 50,000 from the current Rs 24000.
The restrictions were in place post the November 8 statement of demonetisation of Rs 1000 and Rs 500 notes by PrimeMinister NarendraModi. Initially, the limit of withdrawals from ATM was just Rs 2500 which was later increased to Rs 4500.
The administration announced a surprise ban on Rs 500 and Rs 1,000 notes constituting 86.9 per cent of the value of the total currency in circulation and placed restraints on daily and weekly withdrawal limits, Reserve Bank of India has been relaxing these limits in phases taking into account the pace of remonetisation.
Initially, the Reserve Bank of India removed the limit on cash withdrawal limit from current, cash credit and overdraft accounts effective January 31, 2017.
But, the limits on cash withdrawal from savings bank accounts remained in place. After reviewing the progress of remonetisation, Reserve Bank of India in its last monetary policy meeting which was held on February 8, 2017, decided to completely remove the constraints on cash withdrawal limit from savings bank account in two stages.
Accordingly, customers were allowed to withdraw up to Rs50, 000 per week from their savings bank account starting February 20, 2017, from an earlier constraint of Rs 24,000 per week.
“From March 13, 2017, onwards , there will be no restrictions on cash withdrawals from Savings Bank accounts,” RBI said. The demonetisation of high-value currency notes was announced on November 8, 2016, with an objective to black money, counterfeit currency, battle corruption, terror financing and greater digitisation of the economy.