In what could be a huge relief for a number of people across the country, the weekly cash withdrawal limit for savings bank account has been increased to Rs 50,000. The Reserve Bank of India announced that starting February 20 you will be able to withdraw Rs 50,000 weekly. The announcement came with the announcement that there will be no limit on cash withdrawal from March 13.

The weekly cash withdrawal limit from the saving bank account was Rs. 24,000 per account per week.

In a bid to improve the cash crunch that had been going on since Prime Minister Narendra Modi announced his move to demonetise Rs 500 and Rs 1000 notes, RBI on February 8 announced that there will be no limit on cash withdrawal from savings bank account from March 13. The limits on savings bank cash withdrawals post-demonetisation are to be withdrawn in two stages, with the limit slated to go up to Rs,50,000 per account from February 20, and to go altogether from March 13. While some of them have encouraged the move, some of them have urged that we should promote cashless transactions.

Deputy Governor RBI, SS Mundra affirmed on behalf of the central bank that India’s banking system is robust, and to say that there are flaws because of few incidents was wrong. PM Modi took the entire country by surprise on November 8 with his announcement of scrapping the higher denomination Rs 500 and Rs 1000 notes. Despite facing criticism from the opposition parties PM Modi hailed the decision while asserting that it had helped effectively to fight the black money menace.