No restrictions on withdrawals from savings bank accounts from March 13: RBI

Serious Fraud Investigation Office has filed criminal cases against forty-nine shell companies. Photograph:( Reuters )

WION Mumbai, Maharashtra, India Feb 08, 2017, 09.49 AM (IST)

India's central bank, the Reserve Bank of India, announced today that there would be no restrictions on cash withdrawals from savings bank accounts from March 13.

The limit on withdrawals from savings bank accounts following Prime Minister Narendra Modi's move to demonetise old Rs 500 and Rs 1000 notes in November stands at Rs 24,000 per week.

The RBI said the limit on cash withdrawal from savings banks accounts would be relaxed in two stages. It would be increased to Rs 50,000 per week from February 20 and restrictions on withdrawals would be completely lifted from March 13.
 

The RBI had withdrawn the limits placed on daily cash withdrawal from ATMs and current accounts in the wake of demonetisation on February 1. The central bank had also removed all limits on cash withdrawals from current accounts, cash credit accounts, overdraft accounts on January 30.

PM Modi announced demonetisation on November 8 to curb the spread of black money and counterfeit currency and to bring unaccounted wealth into the mainstream economy. The government also placed a withdrawal limit of Rs 2000 a day in  ATMs and Rs 10,000 per day and Rs 20,000 per week in banks in view of currency shortage following demonetisation.

These limits, however, were gradually eased with RBI pumping in new notes of Rs 500 and Rs 2000. 

The withdrawal limit from ATMs was increased to Rs 4,500 per day from ATMs from January 1. The weekly withdrawal limit from banks stood at Rs 24,000. On January 16, the RBI again raised the cash withdrawal limit from ATMs to Rs 10,000

On January 16, the RBI again raised the cash withdrawal limit from ATMs to Rs 10,000 from Rs 4500 while keeping the weekly withdrawal limit from banks unchanged at Rs 24,000. It had also raised the current account withdrawl limit to Rs 1,00,000 from Rs 50,000.

(WION)