No cash limit by mid-March: RBI

The Reserve Bank of India on Wednesday decided to increase the cap on cash withdrawals from savings bank accounts to `50,000 per week from February 20. The withdrawal limit, the RBI said, would be completely lifted from March 13, 2017.

“From February 20, the limits on cash withdrawals from the savings bank accounts will be enhanced to `50,000 per week from the current limit of `24,000 per week. From March 13, there will be no limits prescribed by the RBI on cash withdrawals from savings bank account,” said R. Gandhi, deputy governor, RBI at the post-monetary policy press conference.

He also said `9.29 lakh crore worth new currency notes have been put in circulation as against `15.44 lakh crore in circulation on November 8, 2016.

On the amount of notes that had been returned, RBI deputy governor S.S. Mundra said it will take time as NRIs still have time till June 30 for submitting their old notes. “The final figures after final verification will be published thereafter.”

Mumbai, Feb. 8: The Reserve Bank on Wednesday said that it will set up a separate enforcement department beginning next fiscal to deal with non-compliance of various regulations of the central bank.

“With a view to developing a sound framework and process for enforcement action, it has been decided to establish a separate enforcement department,” RBI said.

Necessary steps have been initiated in this regard and the new department will start functioning from April 1, it said.

RBI noted that regulation, surveillance and enforcement are three important facets of financial sector oversight mechanism.

It has also decided to set up an inter-disciplinary panel on cyber security to examine various threats and suggest measures to deal with it.

“While banks have taken steps to strengthen their defences, the diverse and ingenious nature of recent cyberattacks necessitates an ongoing review of the cyber security landscape and emerging threats. Towards this end, an inter-disciplinary standing committee on cyber security is being constituted,” RBI said. — PTI