Weekly withdrawal limits will soon go
The exercise of remonetisation that began after scrapping of the old Rs 500 and 1,000 notes on November 8 is "nearly complete" as practically there are no restrictions on withdrawals, said Economic Affairs Secretary Shaktikanta Das.
"All restrictions have been removed except on savings bank account of Rs 24,000 per week. This (removal of withdrawal limit) is also a matter of time," he said.
He further said currency supply and management are RBI's responsibility and the central bank will take a call in the near future on lifting the only remaining restriction, which is weekly withdrawal of Rs 24,000 from a savings bank account.
"Only a few withdraw Rs 1 lakh a month. Therefore, effectively and practically today, there is no restriction. I think the process of remonetisation is near-complete. I am using the word near-complete because this Rs 24,000 limit is there," he said.
The emphasis will be on providing lower denomination notes.
Das said the remonetisation process has reached near completion in less than 90 days of announcement of the demonetisation by the Prime Minister on November 8.
"In less than 90 days, the whole process of remonetisation is almost complete. This speaks volumes about the way the remonetisation has been completed," he said.
Earlier in the week, RBI announced lifting of restrictions on daily withdrawal of cash from current and overdraft account as well as ATMs.
The central bank also promised to review the weekly limit in the near future depending on the pace of remonetisation.
The government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following the cash ban.
These limits, however, were gradually eased, with RBI pumping in new notes of Rs 500 and Rs 2,000.
In the wake of demonetisation, RBI had put withdrawal limit Rs 2,000 per day from ATMs and Rs 10,000 per week.
Customers holding current or overdraft or cash credit accounts were allowed to withdraw up to Rs 50,000 in a week.
Towards November end, RBI increased the cap on savings bank withdrawals to Rs 24,000 a week.
Early January, it was further relaxed to Rs 4,500 per day from ATMs, but retained the weekly withdrawal limits. On January 16, RBI enhanced the ATM withdrawals further to Rs 10,000 daily, while keeping the weekly limits at Rs 24,000. The central bank also enhanced the limit on withdrawal from current accounts, overdraft and cash credit accounts to Rs 1,00,000 per week.
Meanwhile, the Reserve Bank will soon put into circulation new Rs 100 banknotes which will be similar to the design of the ones in Mahatma Gandhi Series-2005.
"The Reserve Bank will shortly issue Rs 100 denomination banknotes in the Mahatma Gandhi Series-2005, with the inset letter R in both the number panels, bearing the signature of Dr Urjit R Patel, Governor, Reserve Bank of India," RBI said in a notification. The year of printing '2017' will be on the reverse of the banknote.
RBI said the design of these banknotes to be issued now are similar in all respects to the Rs 100 banknotes in Mahatma Gandhi Series- 2005 issued earlier.
Among the features of the banknotes, there would be ascending size of numerals in the number panels, bleed lines, and enlarged identification mark on the obverse.
All the banknotes in the denomination of Rs 100 issued by the Bank in the past will continue to be legal tender, RBI added.