NEW DELHI -- Keeping its repo rate unchanged at 6.25 percent, Reserve Bank of India on Wednesday announced that there will be no limit on cash withdrawal from savings bank accounts from 13 March, 2017 onwards.
"From 20 February, cash withdrawal limit from savings account will be ₹50,000 per week. From 13 March, no limit on cash withdrawals from savings bank accounts," said deputy governor RBI, R Gandhi.
Further to this he said that limit on cash withdrawal from savings banks accounts will be relaxed in two stages.
"From 20 February, withdrawal limits will be increased from ₹24,000 to ₹50,000," he added.
"Total ₹9.92 lakh crore rupees of total currency including new notes of ₹500 and ₹2000 is in circulation as of 27 January," said RBI Governor Urjit Patel while clarifying the total volume of cash deposits received in the banking system post demonetisation.
The Monetary Policy Committee believes that the environment for timely transmission of policy rates to banks lending rates will be considerably improved if the banking sector's non-performing assets (NPAs) are resolved more quickly and efficiently.
It added that the recapitalization of the banking sector is hastened; and the formula for adjustments in the interest rates on small savings schemes to changes in yields on government securities of corresponding maturity is fully implemented.
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