New Delhi [India], Feb. 1 : After the Reserve Bank of India (RBI) decided to withdraw the limits imposed on cash withdrawals, The Election Commission of India (ECI) issued an advisory to all political parties and candidates contesting for assembly poll to open current accounts.
The announcement of lifting the limits came soon after the poll panel's repeated plea to enhance cash withdrawal limits for the candidates.
Earlier, the ECI had advised the candidates to open accounts in banks without specifying the kind. Now when, the RBI has lifted off all limits from withdrawals from Current accounts/Cash credit accounts/Overdraft accounts, without including savings accounts, the move can help candidates overcome problems faced due to cash shortage because of the existing limit of Rs.
24,000 per week on savings accounts. The RBI on January 29 had turned down the ECI's request, in the wake of assembly polls in five states, to increase the cash withdrawal limit for nominated candidates in the five poll-bound states till the declaration of results on March 11.
The RBI, earlier today, removed limits on cash withdrawals. While limits on withdrawals from Current accounts/Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect that on withdrawals from ATMs will be considered null from February 1, 2017.
The RBI also said the limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.