Withdrawal cap to go from March 13: RBI

From Feb 20, withdraw up to Rs 50,000 a week from your savings account

The Reserve Bank of India (RBI) on Wednesday said restrictions on cash withdrawal from savings accounts would be lifted by March 13, in two phases, considering the current pace of remonetisation. 

From February 20, the limits on cash withdrawals from savings bank accounts would be increased to Rs 50,000 a week, and from March 13, there would be no limits on cash withdrawals. The current limit is Rs 24,000 a week. 

The central bank, on February 1, lifted the cap on withdrawal from cash-vending machines, provided it was within the weekly limit. The restrictions were put in place after the government scrapped old Rs 1,000 and Rs 500 notes on November 8. 

While the ATM withdrawal restrictions initially were Rs 2,000 a day, it was gradually increased to Rs 10,000 a day. The central bank lifted all restrictions on current and cash credit accounts on January 30. 

In a news conference on Wednesday, RBI Deputy Governor R Gandhi said the lifting of restrictions was being done in line with the pace of remonetisation.    

As on January 27, the value of notes in circulation was Rs 9.92 lakh crore, comprising all denominations, including new Rs 500 and Rs 2,000, Gandhi said.

RBI lifted the cap on current accounts after getting a rap from the Election Commission. The commission had written to RBI to allow electioneering candidates to access their legal limits of Rs 20 lakh, but RBI Governor Urjit Patel had declined the request.

The commission then shot a mail stating that RBI could be impinging on a constitutional mandate and that it was “imperative that directions issued by the commission are complied with.”

RBI then withdrew the restrictions on current accounts and said it would free up savings accounts soon.