Demonetisation: Withdrawal restrictions to be relaxed once 80% of new currency is remonetised, says report

Government is planning to relax restrictions on withdrawal limit once 80 percent of the new currency is re-channelised in bank deposits, said top government official.

New Delhi: Government is planning to relax restrictions on withdrawal limit once 80 percent of the new currency is re-channelised in bank deposits.

PTI has reported quoting official sources that withdrawal restrictions will first be relaxed for cooperative banks and will be removed totally when remonetisation is complete.

50 percent of deposits in banks are in new currency now, which shows gradually remonetisation is happening, informed the same official.

Prime Minister Narendra Modi had on November 8 announced junking of old Rs 500 and Rs 1,000 notes, and replaced by new Rs 2,000 and Rs 500 notes.

Along with demonetisation, restrictions were placed on bank counter as well as ATM withdrawals.

The withdrawal limit from banks is Rs 24,000 a week, including a maximum of Rs 2,500 from ATMs per day.​