RBI raises withdrawal limit for savings account to Rs 50,000; no limit from March 13

The Reserve Bank of India on Wednesday said that the weekly withdrawal limit for savings accounts will be raised to Rs 50,000 from the current Rs 24,000 from February 20 and no limit on withdrawal from March 13, 2017.

The central bank on January 30, had cancelled the daily and weekly limits imposed on ATM withdrawals and from the current accounts from February 1. But, that time it had kept the overall limit at Rs 24,000 in a week for savings bank account. 

The apex bank had imposed the limitation on withdrawal of cash after Prime Minister Narendra Modi on November 8 had announced the ban on Rs 500 and Rs 1000 notes. Hence, with the shortage of the currency in the country, the RBI had ordered to put the limit on cash withdrawal.

Since then RBI has been revising the withdrawal limit on current account, savings account and ATMs. 

Today, the RBI kept the key rates unchanged in its sixth bi-monthly monetary policy. Now, the repo rate under the liquidity adjustment facility (LAF) will be at 6.25%. Consequently, the reverse repo rate under the LAF remains unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.