The Reserve Bank of India on Wednesday announced that the cash withdrawal limit on savings accounts stands Rs 50,000 from February 20.

The central bank further added that there will be no limits on withdrawal of cash from savings account effective from March 13.

Speaking at a press conference post the policy review meet RBI said that all the cash withdrawal limits from savings bank accounts will be removed in two phases.

In the first phase, the current withdrawal limit of Rs 24,000 is hiked to Rs 50,000 starting February 20. In the second phase, all the cash withdrawals limits on all the savings bank accounts will be totally phased out.

As of January 27th, a total of 9.92 lakh crore rupees of total currency including new notes of Rs 500 & Rs 2000 is already in the circulation, said RBI.

The announcement was made by RBI Deputy Governor R. Gandhi following the fiscal’s last monetary policy review announcement by the central bank at which it kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government’s demonetisation drive three months ago.

On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.

While lifting of ATM withdrawal limits from March 13 will represent coming full circle for these machines in respect of demonetisation, it is to be seen whether the amount of cash supplied by RBI will be able to satisfy the demand of citizens in future.

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