Reserve Bank on Monday reversed its decision enforcing limits on cash withdrawals from bank accounts and ATMs. The limit on cash withdrawals were brought in by the RBI after Prime Minister Narendra Modi announced demonetisation on November 8, 2016.
In a notification on Monday, the central bank said after a review of the pace of remonetisation, it has been decided to partially restore status quo ante as under:
Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.
The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.
Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.
"Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode," RBI added.