Demonetisation: RBI lifts cash withdrawal limit
New Delhi, March 13: The limits imposed on bank transactions on savings bank cash withdrawals post-Demonetisation has ended on Monday, the Reserve Bank has announced.
Demonetisation was implemented on the basis of two processes. The weekly withdrawal limit per account had been raised to Rs 50,000, from Rs 24,000, with effect from February 20, and all limits on ATM withdrawals were slated to cease from March 13.
The declaration had been made by RBI Deputy Governor R. Gandhi following the fiscal’s last monetary policy review statement by the central bank in February, when it kept its key interest rate fixed at 6.25 per cent, saying it expected data on the full impact of the government’s demonetisation drive.
On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.
The limits were placed following the November 8 demonetisation of Rs 1,000 and Rs 500 notes. The upper limit at ATMs was just Rs 2,500 initially and was later raised to Rs 4,500.
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.
The upper limit for weekly withdrawal from bank accounts had been raised to Rs 24,000 from Rs 20,000 in November.
While lifting of ATM withdrawal limits represents coming full circle for these machines in respect of demonetisation, the return to normalcy in terms of cash available in them is still awaited, indicating the slow pace of remonetisation.