india

Updated: Feb 20, 2017 11:54 IST

The cash withdrawal limit for savings bank accounts was relaxed to Rs 50,000 from Monday, a move announced by the Reserve Bank of India earlier this month.

The RBI had also said it would remove the withdrawal limit from ATMs and savings accounts from March 13, with the cash crunch triggered by the government’s demonetisation exercise easing across the country.

Several limits on cash withdrawals from banks and ATMs were imposed after the government’s surprise move to recall Rs 500 and Rs 1,000 on November 8 that led to severe cash crunch.

Welcoming step, happy with the decision: Delhi resident on weekly cash withdrawal limit for saving accounts hiked to Rs 50,000 from today pic.twitter.com/NsEWoF7FTM — ANI (@ANI_news) February 20, 2017

The central bank has kept pace with the remonetisation process by gradually relaxing the withdrawal limits.

On January 30, RBI had allowed withdrawal up to Rs 24,000 from savings accounts. This was preceded by the relaxation on January 16 when the limit was raised to Rs 10,000 per day from Rs 4,500.

Meanwhile, the Lok Sabha has passed a bill that makes holding of more than 10 old notes of Rs 500 and Rs 1000 an offence punishable with a minimum fine of Rs 10,000.

During the note ban in November, the government had said that Rs 15.4 lakh crore had been circulating in banknotes of Rs 500 and Rs 1000.