Weekly cash withdrawal limit Rs 50k from Feb 20

Weekly cash withdrawal  limit Rs 50k from Feb 20

 The Reserve Bank of India has further relaxed withdrawal limits for savings-bank account holders.

It raised the weekly limit to Rs 50,000 from February 20, and said it was lifting all restrictions on March 13.

“In line with the pace of remonetisation, it has now been decided to remove limits for withdrawal from saving bank accounts in two stages,” RBI Deputy Governor R Gandhi said during a briefing on Wednesday.

Effective March 13, cash withdrawals won’t be restricted, R Gandhi added.
Following Prime Minister Narendra Modi’s announcement on November 8 to demonetise Rs 500 and Rs 1,000 notes, the RBI had limited withdrawals from ATMs to Rs 2,500 per day.

This daily limit was raised to Rs 4,500 on January 1 and Rs 24,000 on February 1. However, the RBI had not revised the weekly cap of Rs 24,000.

On January 30, the central bank had removed withdrawal limits on current accounts, cash credit accounts and overdrafts.

No reduction in interest rates

Interest rates at the banks are unlikely to fall, as the RBI on Wednesday announced it wasn’t changing its repo rate, reports DHNS. Repo rate refers to the rate at which a country’s central bank lends to commercial banks.

The monetary policy committee, which met on Wednesday, changed its stance to neutral from accommodative, clearly indicating near-term rate cuts are unlikely. Following the pause, the repo rate and the reverse repo rate remain unchanged at 6.25% and 5.75%, respectively. All the six members of the committee voted in favour of a pause.

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