Demonetisation

Demonetisation to be over on March 13; RBI to remove cash limit

RBI

Mumbai, February 8: Three months after demonetisation, RBI on Wednesday announced that cash withdrawal limits from bank accounts would be completely eased off from March 13.

The central bank has decided to withdraw demonetisation restrictions in two stages. As per the latest directive, the weekly limit on cash withdrawals from savings bank accounts would be raised to Rs 50,000 per account from February 20. After noteban the cash withdrawal limit was restricted to  24ooo per week.

The RBI on Wednesday also said that total currency worth Rs 9.92 lakh crore was in circulation on January 27.

The announcement was made by RBI Deputy Governor R. Gandhi following the fiscal’s last monetary policy review announcement by the central bank. The RBI kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government’s demonetisation drive three months ago.

Highlighting the merits of new notes of Rs 2,000 and Rs 500, RBI said it is difficult to copy these bills. “The ones being found fake are photocopied and not printed versions of new notes,” the central bank explained.

Unprecedented cash crunch followed after prime minister Narendra Modi announced noteban of Rs 500 and Rs 1000 notes that comprised of 86 % of currency in the country. The RBI had also put limit on cash withdrawal from bank accounts and ATMs.

On January 30, the RBI had cleared curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts. The upper limit at ATMs was just Rs 2,500 initially and was later raised to Rs 4,500. In January, the RBI had hiked the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly Current Account 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.

With the lifting up of the ATM withdrawal limits from March 13, demonetisation limits would take a backstage. We hope the adequate amount of cash is supplied by RBI to satisfy the demand too.

Wefornews Bureau

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