With­draw as Much as You Want from Mar 13

₹ Re­moval of with­drawal limit to be im­ple­mented in two phases as sup­ply of cash im­proves: RBI

The Economic Times - - Companies -

Mum­bai: The Re­serve Bank of In­dia will re­move caps on cash with­drawals from sav­ings bank ac­counts in two phases, tak­ing away­all­re­stric­tion­son­cash­with­drawal­son March 13 as it ex­pects enough cur­rency notes to be in cir­cu­la­tion by then.

In the first phase, the weekly with­drawal limit will be raised to ₹ 50,000 from ₹ 24,000 ef­fec­tive Fe­bru­ary 20, the cen­tral bank said on Wed­nes­day.

As of now, farm­ers are al­lowed to with­draw up to ₹ 50,000 a week, and peo­ple can up to ₹ 2.5 lakh a week for mar­riage pur­poses. There is no limit on cash with­draw- al from cur­rent ac­count.

Re­stric­tions on cash with­drawals were in­tro­duced af­ter the gov­ern­ment de­cided to ban ₹ 500 and ₹ 1,000 notes.

As on Jan­uary 27, RBI said the cur­rency in cir­cu­la­tion is worth ₹ 9.92 lakh crore. This is about 57% of ap­prox­i­mately ₹ 17.50 lakh crore that was in cir­cu­la­tion be­fore de­mon­eti­sa­tion on Novem­ber 8.

RBI did not give out any fresh es­ti­mates of banned notes that have re­turned as it ex­pects more de­posits in old cur­rency notes. The last date for de­posit­ing old cur­rency notes was De­cem­ber 31, 2016, but the cen­tral bank has al­lowed NRIs to de­posit their old cur­rency notes till March 31.

RBI is also await­ing data on de­posits from Nepal and Bhutan as well as de­posits in co­op­er­a­tive banks.

“The­countin­gof note­sis­goin­gon,”saidSS Mun­dra deputy gov­er­nor, RBI. “Af­ter 30th De­cem­ber we had asked banks to cal­cu­late theamountof old­cur­ren­cythathas­comein, af­ter that a RBI team also checked it on a sam­ple ba­sis that process is over. The phys­i­cal rec­on­cil­i­a­tion of cash is still go­ing on that will be hope­fully over soon.”

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