Faced with incredible heat of demonetisation for the ruling BJP, the Reserve Bank of India on Wednesday said that the limit on cash withdrawal from savings backs accounts will be relaxed in two stages.
The existing limit will be relaxed from Rs 24,000 per week to Rs 50,000 from 20 February.
From 13 March, the RBI said, there will be no limit on cash withdrawal from savings bank accounts.
The latest announcement comes in the wake of growing anger for the ruling BJP government at the Centre ahead of Uttar Pradesh elections.
The RBI’s announcement assumes significance in light of its dented credibility post Raghuram Rajan’s departure. The federal bank is now being seen as an extended arm of the union finance ministry.
Many would view the RBI’s decision as a desperate step to bail out the struggling BJP in the ongoing assembly polls. It remains to be seen if this will be a too little too late step.
More to follow