The Reserve Bank of India today announced that the weekly withdrawal limit for savings account will be raised to Rs 50,000 from February 20 and the limits on savings bank cash withdrawals post-demonetisation are to be withdrawn in two stages.
"The limits on cash withdrawal from savings bank accounts continue to be in place. In line with the pace of remonetisation, it has now been decided to remove these limits in two stages. First, the weekly withdrawal limit for savings accounts will be raised to Rs 50,000 from February 20. From March 13, there will be no limit on cash withdrawal from savings accounts," said RBI Deputy Governor R Gandhi.
Limitations on cash withdrawal, which was put in place after November 8, 2016, would be removed completely from March 13.
At present, the weekly withdrawal limit for savings account is Rs 24,000. On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.
The Reserve Bank of India has also projected that the economy will recover sharply from Demonetization and expand to 7.4% in the next fiscal year, so it leaves its repo rate unchanged at 6.25%.