New Delhi: The Centre has decided to increase the cash withdrawal limit on savings accounts to Rs 50,000 per week from February 20 with the move aimed at giving relief to people suffering from cash crunch across the country following the November 8 demonetisation of high value currency notes.
The limitations on cash withdrawal will be completely removed after March 13, the Reserve Bank of India said.
As of now people are allowed to lift a maximum of Rs 24,000 a week.
It is worthwhile to mention here that Modi government all of a sudden scrapped high value currency notes of Rs 500 and Rs 1000 from November 8. The move was aimed at stopping cash hoarding and black money laundering which lead to tax evasion and corruption.
As a result of the decision about 86 per cent of cash in circulation was returned back to the central bank. While crediting into the accounts with the old notes along with exchange of old currencies for new ones were allowed the government imposed sharp restrictions on debiting from the accounts. In the meantime cash crunch was experienced throughout the country with people waiting in long queues outside of banks.