Jan 30, 2017: Cap on withdrawal from Savings account is still in force, however, RBI will end curbs on withdrawal from ATM from February 1.
At last, RBI has announced partial relief as far as maximum cash withdrawal from banks are concerned. News agencies report, RBI has lifted cap on withdrawals from Current Accounts, Overdraft Accounts and Cash Credit Accounts with immediate effect. A RBI notification stated limits on ATM withdrawals will also go away from Wednesday. However, cap on maximum withdrawal from Savings Account will remain in force.
Notably, cap on withdrawals were placed after PM Modi announced demonetization of Rs 1,000 and Rs 500 notes on November 8. Earlier this month, the RBI had hiked the daily ATM withdrawal limit Rs 10,000 and raised the weekly withdrawal limit from Savings account to Rs 24,000. In case of Current Account, withdrawal limit hiked to Rs 1 lakh.
This move is expected to bring relief for business community, holders of Overdraft and cash credit accounts. A large section of people, particularly Government employees and commoner are hoping that cap on withdrawal from Savings Accounts too go off earliest. It is learnt that after considering progress of re-monetization, RBI will also end curb on withdrawals from Savings accounts.
