The Reserve Bank of India, on Wednesday, revealed its plan to increase the weekly limit of cash withdrawal from the savings bank account from Rs 24,000 to Rs 50,000 from February 20. Moreover, RBI now plans to fully phase out the withdrawal limit on saving bank accounts from March 13.
"The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of re-monetisation, it has now been decided to remove these limits in two stages," said RBI Deputy Governor R Gandhi, as reported by The Times of India.
The withdrawal limit was imposed after the Indian government banned high-end value currency notes of Rs 500 and Rs 1000 on November 8. This step was aimed at curbing corruption and preventing tax evasion. Demonetisation saw ATMs across several cities in India going cashless, adding to the adversity.
Earlier, the weekly ATM withdrawal limit was increased from Rs 10,000 to Rs 1 lakh. With this development, things are expected to get back on track soon.
While critics are questioning the actual results of demonetisation, the news of the increase in withdrawal limit of savings bank account will surely bring some respite to the people.
Title Image: Hindustan Times