Cash Withdrawal Limit From Savings Account Relaxed: RBI

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Mumbai: The Reserve Bank of India in its monetary policy meet  on Wednesday announced  that the weekly withdrawal limit from savings account will be raised to Rs 50,000 from February 20, while adding there will be no limit from March 13 onward.

The central bank has last month retained the weekly withdrawal limit of Rs 24,000 on savings bank accounts despite the Election Commission asking it to relax the weekly limits for candidates contesting the Assembly elections in five states.

After demonetisation move by the government last year, withdrawing the legal tender status of Rs 500 and Rs 1,000 notes, the central bank changed the withdrawal limits several times.

Initially, it had put curbs on cash withdrawals and set a daily withdrawal limit of Rs 2,500 from the ATMs and Rs 24,000 from bank accounts per day from November 10.

Meanwhile, RBI Governor Urjit Patel today cut the economic growth forecast to 6.9 per cent for the current fiscal from 7.1 per cent estimated earlier, even as he said the economy will bounce back to 7.4 per cent rate next fiscal.

The central bank also kept key interest rates unchanged saying it wants to assess how the transitory effects of demonetisation on inflation and the output gap play out.