RBI removes withdrawal limits on current accounts

Reserve Bank of India (RBI) removed the limits on withdrawals from current accounts, but kept the overall limit at Rs 24,000 a week for savings bank account.

In a notification, the central bank said it was doing away with the Rs 1 lakh per week limit on current accounts even as it suggested that banks can keep their own limits for these accounts.

"Limits...placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016," RBI said.

The limits on bank withdrawals were placed after the withdrawal of Rs 500 and Rs 1000 notes announced on November 8. Currency was in short supply after the withdrawal as the newly designed notes took time to come into circulation.

The limit on weekly withdrawals from current account was raised to Rs 1 lakh earlier this month from the Rs 50,000 set just after the November 8 announcement.

RBI said that the Rs 24,000 limit on withdrawals from savings accounts per week could also be relooked. "The limits on savings bank accounts will continue for the present and are under consideration for withdrawal in the near future. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode," RBI said.

Source:-The Economic Times