In a major relief to people across the country, the Reserve Bank of India announced on Wednesday that the weekly withdrawal limit from savings account will be raised to Rs 50,000 from February 20, while adding there will be no limit from March 13 onward. The central bank has last month retained the weekly withdrawal limit of Rs 24,000 on savings bank accounts despite the Election Commission asking it to relax the weekly limits for candidates contesting the Assembly elections in five states.
“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. “Effective February 22, 2017, the limits from cash withdrawal from savings bank accounts will be enhanced to Rs 50,000 per week from the current limit of Rs 24,000 per week (and) effective March 13, 2017, there will be no limits prescribed by RBI on cash withdrawal from savings bank accounts.”
He was speaking to the media, along with RBI Governor Urjit Patel, after the central bank announced the sixth bi-monthly monetary policy review. After demonetisation move by the government last year, withdrawing the legal tender status of Rs 500 and Rs 1,000 notes, the central bank changed the withdrawal limits several times.
Initially, it had put curbs on cash withdrawals and set a daily withdrawal limit of Rs 2,500 from the ATMs and Rs 24,000 from bank accounts per day from November 10.
Meanwhile, RBI Governor Urjit Patel today cut the economic growth forecast to 6.9 per cent for the current fiscal from 7.1 per cent estimated earlier, even as he said the economy will bounce back to 7.4 per cent rate next fiscal. The central bank also kept key interest rates unchanged saying it wants to assess how the transitory effects of demonetisation on inflation and the output gap play out.
(with inputs from agencies)