The Reserve Bank of India on Monday announced that limits placed on cash withdrawals from ATMs stand withdrawn from Feb 1. However, the weekly withdrawal limit of Rs 24,000 will continue. The central bank also said that all limits on current account and overdraft accounts stand withdrawn with immediate effect. The RBI, however, allowed the banks to maintain their discretion on own operating limits.
WATCH VIDEO | RBI Removes Withdrawal Limits On ATMs For Current Accounts
“On a review of the pace of remonetisation, it has been decided to partially restore status quo ante,” RBI said adding, cash withdrawal limit from ATMs stands withdrawn from February 1, 2017.
RBI has also removed all limits on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect. “The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future,” it said.
It further said that banks have been “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.”
Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following demonetisation. These limits, however, were gradually eased with RBI pumping in new notes of Rs 500 and Rs 2000.
(With inputs from PTI)