Today, as per the wordings of Reserve bank of India the edge on cash withdrawal from savings bank accounts will be aloof in two stages. The primary stage is the weekly withdrawal limit will be increased to Rs 50000 for current account Rs 24000 from 20 February and then absolutely removed from 13th march. The central bank had previously on 30th January rescinded the limits positioned on cash withdrawals from current accounts, credit accounts, and overdraft accounts.
It had detached the daily withdrawal from ATMs from 1st February but reserved the weekly limits on savings accounts at Rs 24000. On the other hand, it vestiges to be perceived whether the central banks, budge to entirely withdraw cash withdrawal limit will be of some use to the clients. As per the media report, about one-fourth ATMs all over the country have no cash as withdrawals prickled for the duration of the salary payment cycle.
In addition banks on the alleged reason of daunting cash transactions have engraved the number of free cash transaction per month to four and also augmented fee for transactions above four to Rs 150 per transaction. The stepped approach, at a time when the government is opposite heat in parliament over the demonetization and the following cash crunch that have even resulted in deaths of people waiting in bank line up.
Despite the fact that Prime minister Narendra Modi had guaranteed to alleviate the tenderness for the mass in 50 days the government had botched in doing so due to lack of providing of new currency notes. At the end of 50 days time on 1st January, the government could just augment the daily withdrawal limit from ATMs of Rs 4500 from Rs 2500 obligatory after the demonetization. Later on 16th January reserve bank of India more than two folded the daily withdrawal limit to Rs 10000 but preserved the weekly ceiling at Rs 24000. It also hoisted the weekly withdrawal limit from current accounts to Rs 1 lakh from 50000 Rs. The Reserve Bank of India had positioned limits on cash withdrawals subsequent to the demonetization of old Rs 500 and Rs 1000 from 9th November 2016.
The 50-day demonetization term ended on 30th December and on the other hand NRIs and Indians who were abroad during the demonetization period have given supplementary time to set down their old currency notes.
Today, the Reserve Bank of India has finally announced it monetary policy and here are some key highlights of its latest policy:
- MSF & Bank rate unaffected at 6.75 percent
- Repo rate vestiges untouched at 6.25 percent
- Current account shortfall below 1 percent of GDP in FY17
- Jan-March CPI at 4 percent with a band of +/-2 in medium period
- Escalation to recuperate sharply in FY18
- Weekly cash withdrawal limit on savings account to be hoisted to Rs 50000 from 20th Feb 2017
- Cash withdrawal limits to be aloof from 13th march 2017
- Cash withdrawal limits to be simple in two stages