RBI raised withdrawal limit from savings banks accounts to Rs 50,000 from Rs 24,000

The Reserve Bank of India (RBI) said on Wednesday it would remove the cash withdrawal limit from ATMs and savings accounts from March 13.

Cash withdrawal limit from savings bank accounts will be relaxed to Rs 50,000 from February 20 to March 13, after which it will be removed, RBI deputy governor R Gandhi said after the monetary policy meeting.

Several limits on cash withdrawals from banks and ATMs were imposed after the government’s surprise move to demonetise Rs 500 and Rs 1000 on November 8, 2016.

Earlier, on January 30, RBI had allowed withdrawal upto Rs 24,000 from savings accounts. This was preceded by the relaxation on January 16 when the limit was raised to Rs 10,000 per day from Rs 4,500.

The government has been saying the amount of currency in circulation would remain lower that what it was before November 8 even after remonetisation is completed, a move aimed at encouraging people to go cashless and adopt digital payment methods.