People queue up outside an ATM to withdraw cash. Pic/ PTI
The Reserve Bank on Wednesday said the weekly limit on withdrawal of cash from savings bank accounts will be increased to Rs 50,000, from the current Rs 24,000, from February 20, and the limit will be removed from March 13.
"The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of remonetisation, it has now been decided to remove these limits in two stages," said RBI Deputy Governor R Gandhi.
"Effective February 20 (rpt) 20, 2017, the limits from cash withdrawal from savings bank accounts will be enhanced to Rs 50,000 per week from the current limit of Rs 24,000 per week (and) effective March 13, 2017, there will be no limits prescribed by RBI on cash withdrawal from savings bank accounts."
He was speaking to the media, along with RBI Governor Urjit Patel, after the central bank announced the sixth bi-monthly monetary policy review.
On the basis of remonetisation, RBI had earlier restrictions on cash withdrawal from current accounts, cash credit accounts and withdrawal through ATMs on February 1. However, the weekly withdrawal limit of Rs 24,000 on savings bank accounts is continuing. Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of the currency shortage following demonetisation.
These limits, however, are being gradually eased, with RBI pumping in new notes of Rs 500 and Rs 2,000.