Withdrawal limit to ease after 80percent money channelized in bank deposits

NewDelhi,Dec16:As of now, 50 per cent of the deposits in banks are in the new currency which shows gradually money is remonetised, he said implying that half of the new currency withdrawn has found way back into banks by way of deposits.

“When 80 per cent of new currency is re-channelised in the bank deposits then withdrawal restrictions will be eased,” he said. “Withdrawal restrictions will first be relaxed for cooperative banks and then for all banks. And over time as remonetisation is completed they will be removed totally.”

Before the announcement of demonetisation, the government had already arranged for the printing of 200 crore Rs 2,000 notes, or roughly about Rs 4 lakh crore in value. They were the first set of notes to be circulated.

Thereafter, a new Rs 500 note was introduced and now all the four printing presses of RBI at Dewas in Madhya Pradesh, Nashik in Maharashtra, Salboni in West Bengal and Mysuru in Karnataka are working overtime to replenish the exhausted currencies.

The official said the restrictions will be withdrawn once the situation stabilises.

“Remonetisation has substantially happened and as and when it (stabilisation) happens, restrictions will be eased,” he said, adding that there will be no cap on deposits made in the bank from January 2017