All limits on cash withdrawals from savings account ended

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All limits on savings bank money withdrawals post-demonetisation finished on Monday, as had been reported by the Reserve Bank of India (RBI) a month ago.

In a two-stage process, the week after week withdrawal limit per account had been raised to Rs. 50,000, from Rs. 24,000, with impact from February 20, and all limits on ATM withdrawals were slated to quit March 13.

The declaration had been made by RBI Deputy Governor R Gandhi following the financial year’s last monetary policy declaration by the central bank in February, when it kept its key interest rate unchanged at 6.25%, saying it awaited data on the full impact of the government’s demonetisation drive.

On January 30, the central bank had finished all curbs on withdrawals from current records, money credit records and overdraft accounts.

The limits were put following the government’s move on November 8 to demonetise Rs. 1,000 and Rs. 500 notes, taking out 86% of the money available for use. The upper limit at ATMs was simply Rs. 2,500 at first and was later raised to Rs. 4,500.

In January, the Reserve Bank of India had climbed the daily ATM withdrawal limit to Rs. 10,000 and doubled the weekly current record withdrawal limit to Rs. 1 lakh.

The upper limit for weekly withdrawal from bank accounts had been raised to Rs. 24,000 from Rs. 20,000 in November.

While lifting of ATM withdrawal limits represents coming full circle for these machines in regard of demonetisation, the return to normalcy in terms of csah available in them is still awaited, showing the slow pace of remonetisation.

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