RBI May Remove Weekly Withdrawal Limit From Savings Bank Accounts

The Reserve Bank of India or RBI is likely to remove the restrictions on cash withdrawals from savings accounts soon. "Remonetisation exercise is nearly complete," Economic Affairs Secretary Shaktikanta Das told PTI. Currently only an amount of Rs 24,000 can be withdrawn from savings accounts. Last week the RBI had removed withdrawal limits from current accounts and ATMs or automated teller machines.The RBI had initially set a cash withdrawal limit of Rs. 50,000 from current accounts which was later increased to Rs.100,000 a day.

 The RBI chief Urjit Patel in January told a parliamentary panel that the central bank has issued Rs. 9.2 lakh crore of new currency, thus replacing 60 per cent of demonetised currency.

The cash withdrawal limits were first put in November when Prime Minister Narendra Modi demonetised all the high denomination currency notes in the country which, in one go, sucked out as much as 86 per cent of the cash from the economy, leading to long queues outside ATMs and bank branches.