The Reserve Bank of India on Wednesday decided to do away with cash withdrawal limit on saving bank accounts from March 13.
The RBI said that it would remove the cap on cash withdrawals from saving bank accounts in two phases.
In the first phase on February 20, the withdrawal limit will be raised to Rs 50,000 from Rs 24,000 a week. From March 13 onwards all cash withdrawal limits would be lifted.
At present, the weekly withdrawal limit is Rs 24,000 for savings accounts and there is no limit on current account.
The limit on current accounts was lifted on January 30. As on January 27, RBI has stated that total currency in circulation was worth Rs 9.92 lakh crore.
The Reserve Bank had capped withdrawal limits on ATMs and bank branches following the demonetisation move announced by the government on November 8. This had led to a massive cash crunch and long queues outside banks and ATMs.