Question: Recently RBI announced the removal of limits on withdrawal of cash from Saving Bank Accounts this will be effective from-
(a) 20 February, 2017
(b) 13 March 2017
(c) 10 March 2017
(d) 1 April 2017
Ans:(b)
Related facts:
- On 8 February 2017; RBI released a circular regarding removal of limits on withdrawal of cash from Saving Bank Accounts.
- In line with the pace of remonetisation, RBI decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including accounts opened under PMJDY) in a two step process as under:
I. Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts enhanced to Rs 50,000 per week (from the current limit of Rs 24,000 per week); and
II. Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts. - Under section 42(1) of Reserve Bank of India Act, 1934 RBI withdrawn the legal tender status of Rs 500/- and Rs 1000/- denominations of bank notes issued by the Reserve Bank of India till November 8, 2016 (referred to as Specified Bank Notes)
- It may be recalled that earlier the limit was set within the existing overall cash withdrawal cap of Rs24,000 per week per account at both banks and ATMs.
- Also, RBI had removed the daily withdrawal from ATMs from 1 February but kept the weekly limits on savings accounts at Rs 24,000.
- Earlier, RBI on 30 January 2017 removed all limits on withdrawal have been removed for current accounts, cash credit accounts, and overdraft accounts with immediate effect.
Reference:
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10856&Mode=0