Cap on bank withdrawals to be reviewed after Dec 30: Lavasa

On the likely impact of demonetisation on growth, Finance Secretary admits that informal sector which mostly deals in cash is facing problem

Finance Ministry on Friday said the cap imposed on withdrawal from bank accounts post demonetisation will be reviewed after December 30, the last date for depositing of old currency notes with the banks.

The government has fixed a limit of Rs 24,000 per week on withdrawal from bank accounts and Rs 2,500 per day from ATMs in view of the currency crunch following scrapping of 500 and 1,000 rupee notes.

"There will be a review which will be done after December 30 and whatever steps are required to be taken to bring things back to normalcy, I think they will be decided only after the review is complete," Finance Secretary Ashok Lavasa said at a Ficci event here.
 

On the likely impact of demonetisation on growth, he admitted that informal sector which mostly deals in cash is facing problem.

"Going forward, as the period of December 30 ends, a very calm assessment has to be made on what kind of impact has happened," Lavasa said.

The RBI has cut economic growth forecast for current fiscal to 7.1%, from earlier 7.6%.