Mumbai: The Reserve Bank of India on Wednesday announced that the limit on cash withdrawals from savings bank accounts will be raised to Rs 50,000 from Rs 24,000 per week, starting February 20.

The RBI also announced that from March 13, there will not be any limit on cash withdrawals from savings bank accounts.

"From February 20, cash withdrawal limit from savings account will be Rs. 50,000 per week. From March 13, no limit on cash withdrawals from savings bank accounts," said deputy governor RBI, R Gandhi.

 Further to this he said that limit on cash withdrawal from savings banks accounts will be relaxed in two stages.

"From February 20, withdrawal limits will be increased from Rs. 24,000 to Rs. 50,000," he added.

"Total Rs. 9.92 lakh crore rupees of total currency including new notes of Rs. 500 and Rs. 2000 is in circulation as of 27th January," said RBI Governor Urjit Patel while clarifying the total volume of cash deposits received in the banking system post demonetisation.

The Monetary Policy Committee believes that the environment for timely transmission of policy rates to banks lending rates will be considerably improved if the banking sector's non-performing assets ( NPAs) are resolved more quickly and efficiently.

It added that the recapitalization of the banking sector is hastened; and the formula for adjustments in the interest rates on small savings schemes to changes in yields on government securities of corresponding maturity is fully implemented.