New Delhi: Reserve Bank of India (RBI) on Wednesday raised the weekly cash withdrawal limit to Rs 50,000 from Rs 24,000, which will be effective from February 20.
RBI also announced that from March 13 there will be no cap on cash withdrawal from the savings account.
“The limits on 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 2 stages,” stated RBI Deputy Governor R Gandhi.
First, the weekly cash withdrawal limit for savings accounts will be upped to Rs 50,000 from February 20. From March 13, there will be no cap on cash withdrawal from savings accounts, the RBI announced at the 6th bi-monthly monetary policy review.
At present, the weekly cash withdrawal limit is Rs 24,000 for savings accounts.
The RBI stated that total currency worth Rs 9.92 lakh crore was in circulation on January 27.
The RBI added that new notes of Rs 2,000 and Rs 500 are difficult to duplicate. “The ones being found fake are photocopied and not printed versions of new notes,” the central bank stated.
The RBI had put a limit on cash withdrawal from bank accounts in the wake of demonetization of Rs 500 and Rs 1,000 notes on November 8. Long queues had been seen outside banks and ATMs following this move.
On January 30, the RBI had ended all limits on withdrawals from current accounts, cash credit accounts and overdraft accounts.
The central bank had also increased the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly current account withdrawal limit to Rs 1 lakh.
The upper limit for weekly withdrawal from bank accounts had been increased to Rs 24,000 from Rs 20,000 in November.