Cash withdrawal limits go back to pre-demonetisation era

Toni Houston
March 15, 2017

The move, albeit announced much earlier on February 8, comes to effect from Monday.

The restrictions placed on cash withdrawals from bank accounts after Centre's demonetisation drive on November 8, 2016 was completely removed today.

Banks across the country did not allow their customers to withdraw exceeding Rs 50,000 per week until last week.

Speaking on the RBI's decision, RBI Deputy Governor R Gandhi said, "The limits on cash withdrawal from savings bank accounts continue to be in place".

The RBI had said that it was awaiting the impact of demonetization on the country, which later turned out to be positive and nowhere near the dystopian picture that was drawn by some economists and the Opposition. The limit was set within the existing overall cash withdrawal cap of Rs24,000 per week per account at both banks and ATMs.

Starting with just Rs.2500, the RBI periodically raised the withdrawal limit from ATMs. 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.

On 10 March, Jaitley, who has been on Monday given the additional charge of defence after Manohar Parrikar returned to Goa as chief minister, had told Lok Sabha that new currency notes worth over Rs 12 lakh crore are now in circulation in the country.

He said as far as the remonetisation exercise is concerned, the RBI has been injecting new Rs 500 and Rs 2,000 notes systematically into the market since November 8.

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. "This amount itself would have now increased to beyond Rs 12,00,000 crore", he said during Question Hour.

Other reports by Ligue1talk

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