No limit on cash withdrawal from March 13th

Photo of Indian currency of Rs 100 and Rs 500 notes.

Mumbai: The Reserve Bank of India announced today that the limits on savings bank cash withdrawals post-demonetisation are to be withdrawn in two stages, with the limit slated to go up to Rs,50,000 per account from February 20 and to cease from March 13.

The RBI Deputy Governor R. Gandhi made the announcement following the fiscal’s last monetary policy review announcement by the central bank at which it kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government’s demonetisation drive three months ago.

The RBI on January 30th had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.

Following, the November 8th demonetisation of Rs 1,000 and Rs 500 notes the limits were placed. The upper limit at ATMs was just Rs 2,500 initially and was later increased to Rs 4,500.

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The RBI in January had hiked 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 raised to Rs 24,000 from Rs 20,000 in November.

While lifting of ATM withdrawal limits from March 13 will represent coming full circle for these machines in respect of demonetisation, it is to be seen whether the amount of cash supplied by RBI will be able to satisfy the demand of citizens in future.

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