Limits on cash withdrawals will be removed entirely from March 13, India’s central bank said Wednesday, as it left interest rates on hold for the second time since a ban on high-value rupee notes.
The Reserve Bank of India capped cash withdrawals after Prime Minister Narendra Modi’s shock decision in November to take all 500 ($7.40) and 1,000 rupee notes out of circulation — 86 percent of the currency in the cash-reliant nation.
The ensuing cash crunch saw long queues outside banks and ATMs, which ran dry within hours and left many, especially in rural areas, without food or daily essentials.
The central bank partially lifted limits for certain accounts earlier this month, but not for customers holding the more widely used savings accounts.
In a statement Wednesday, the bank said withdrawal limits would be nearly doubled from 24,000 rupees to 50,000 from February 20 before “the complete cap be removed on 13th of March and there will be no limits to cash withdrawals.”
The bank also said it was leaving interest rates unchanged at 6.25 percent for the second time since November’s so-called “demonetization.”
The bank has been under pressure to cut rates to stimulate the economy amid fears the cash ban had slowed growth.
The benchmark repo rate — the level at which it lends to commercial banks — would remain steady, the bank also announced, after it was cut to 6.25 percent in October.
Source: Arab News
GMT 16:45 2017 Tuesday ,19 December
Sukuk Al-Salam issue 200 fully subscribedGMT 16:46 2017 Thursday ,14 December
CBB raises key interest rateGMT 12:35 2017 Thursday ,14 December
South Korea bans its banks from dealing in BitcoinGMT 16:21 2017 Tuesday ,12 December
Sukuk Al-Ijara issue 148 fully subscribedGMT 12:53 2017 Monday ,11 December
Bahraini bank evolves as fintech leaderGMT 08:22 2017 Sunday ,10 December
Bahrain issues ETFs regulationsGMT 12:03 2017 Friday ,08 December
No VAT on loans, ATM services, says Saudi tax authorityGMT 11:48 2017 Thursday ,07 December
India's central bank holds rates at seven-year lowMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©