NEW DELHI: In a welcome move, the Reserve Bank of India on Wednesday decided to phase out weekly limit on cash withdrawal from savings accounts in two stages, starting from February 20.
“The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of remonetisation, it has now been decided to remove these limits in two stages,” said RBI Deputy Governor R Gandhi.
First, the weekly withdrawal limit for savings accounts will be raised to Rs 50,000 from February 20. From March 13, there will be no limit on cash withdrawal from savings accounts, the RBI announced at the sixth bi-monthly monetary policy review.
At present, the weekly withdrawal limit is Rs 24,000 for savings accounts.
The RBI said 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 copy. “The ones being found fake are photocopied and not printed versions of new notes,” the central bank said.
The RBI had put limit on cash withdrawal from bank accounts in the wake of demonetisation of Rs 500 and Rs 1,000 notes on November 8. Long queues had been visible outside banks and ATMs following this move.
On January 30, the RBI had ended all curbs on withdrawals from current accounts, cash credit accounts and overdraft accounts.
The central bank had also 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.