Mumbai: All limits placed on cash withdrawals from savings bank account post demonetisation of high denomination currency notes ended on Monday.
Ever since the government announced a surprise ban on Rs 500 and Rs 1,000 notes constituting 86.9 per cent of the value of the total currency in circulation and placed caps on daily and weekly withdrawal limits, RBI has been relaxing these restrictions in phases taking into account the pace of remonetisation.
Initially, the RBI removed the restriction on cash withdrawal limit from current, cash credit and overdraft accounts effective January 31, 2017.
However, the limits on cash withdrawal from savings bank accounts remained in place. After reviewing the progress of remonetisation, RBI in its last monetary policy meeting held on February 8, 2017, decided to completely remove the restrictions on cash withdrawal limit from savings bank account in two phases. Accordingly, customers were allowed to withdraw up to Rs50,000 per week from their savings bank account starting February 20, 2017, from an earlier limit of Rs 24,000 per week.
“Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts,” RBI said. The demonetisation of high-value currency notes was announced on November 8, 2016, with an aim to battle corruption, black money, counterfeit currency, terror financing and greater digitisation of the economy.
