Savings bank accounts: RBI lifts all restrictions on cash withdrawals

Savings bank accounts: RBI lifts all restrictions on cash withdrawals

Savings bank accounts: RBI lifts all restrictions on cash withdrawals

RBI raised the ATM withdrawal limit for savings account holders from Rs2,000 per day to Rs2,500 and Rs4,500 per day in December and subsequently to Rs10,000 per day from 16 January. Earlier, the central banks had removed all curbs on branch withdrawals from current accounts, overdraft accounts, cash credits in January 30 and limits placed on daily cash withdrawal from ATMs from February 1. The banking regulator had been reviewing the withdrawal limit in a phased manner.

The ban on old Rs.500, Rs, 1000 Notes was imposed on Novemebr 8, 2016 that led to monetary choas and huge business loss for the country for over four months, led to huge corruption among the bank staff and finally it ended a day after win for BJP in Uttar Pradesh.

RBI had already made an announcement last month that cash withdrawal limits on savings accounts will be completely abolished with effect from March 13.

Starting with just Rs.2500, the RBI periodically raised the withdrawal limit from ATMs.

While lifting of ATM withdrawal limits represents coming full circle for these machines in respect of demonetisation, the return to normalcy in terms of cash available in them is still awaited, indicating the slow pace of remonetisation.

According to an Axis Bank staff quoted in the report, the cash being refilled in the ATMs is getting over quickly and it has been so for the last one week.

Jaitley said the RBI has been injecting new currency notes of Rs 500 and Rs 2,000 denominations systematically into the market since 8 November.

The limit of withdrawal from saving account, which was initially stipulated at ₹ 20,000 per week, was revised to ₹ 24,000 and further to ₹ 50,000 per week (effective February 20, 2017). "This amount itself would have now increased to beyond Rs 12 lakh crore", he said in Lok Sabha during Question Hour.

In the interim, Finance Minister and the RBI continued silence on the exact value or number of banned notes returned.

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