Limits on cash withdrawal from savings bank account removed from today

  • Limits on cash withdrawal from savings bank account removed from today

Limits on cash withdrawal from savings bank account removed from today

After Prime Minister Narendra Modi on November 8 demonetised Rs 500 and Rs 1,000 currency notes, the RBI had put restrictions on cash withdrawal from ATMs and banks to deal with the shortage of cash in the country.

In a two-stage process, the weekly withdrawal limit per account had been raised to Rs 50,000 from Rs 24,000, with effect from 20 February, and all limits on ATM withdrawals were slated to cease from 13 March. The limit was set within the existing overall cash withdrawal cap of Rs24,000 per week per account at both banks and ATMs.

Cash withdrawals from the bank deposit accounts up to ₹ 2,50,000 were allowed from November 21, 2016 to meet wedding related expenses.

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The RBI has already removed other restrictions such as on ATMs and current accounts last month. "We hope that the RBI will dispatch more currency to the banks to meet the demand", said the manager of an SBI branch in the city on condition of anonymity. After December 30, the RBI had asked all the banks to compile the data on these old currencies and the RBI team has also finished checking that data on sample basis. Demonetisation left the country in a situation of a cash crunch, and now remonetisation is slowly picking pace.

The central bank estimates that currency in circulation as on 3 March was near Rs 12 lakh crore.

Axis Bank said a charge of Rs 5 per thousand or Rs 150, whichever is higher, will be levied from the fifth cash transaction on savings accounts. In January, the RBI had hiked the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly current account withdrawal limit to Rs 1 lakh. Arun Jaitley answered a question in parliament and said that it was hard to provide an exact figure of defunct Rs 500 and Rs 1,000 notes deposited so far. Then the genuine and fake notes have to be segregated.