Reserve Bank of India has removed all cash withdrawal limits from savings bank accounts, the move which was announced by apex bank through a notification last month came into effect from March 13.
The withdrawal limit was relaxed in two stages, while the weekly limit for savings accounts was raised from Rs 24,000 to Rs 50,000, with effect from February 20, all limits on ATM withdrawals were slated to cease from March 13. On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.
Earlier, cash withdrawal limit at automated teller machines (ATMs) was enhanced to Rs 10,000 per day per saving bank account from Rs 4500 per day on 16 January. Besides it also doubled the weekly Current Account withdrawal limit to Rs 1 lakh.
The limits were placed following the November 8 demonetisation of Rs 1,000 and Rs 500 notes. The upper limit at ATMs was just Rs 2,500 initially and was later raised to Rs 4,500. Restriction were imposed to deal with shortage of cash in the economic system and to keep a tab on high demand of new notes.
While lifting of ATM withdrawal limits represents coming full circle for these machines in respect of demonetisation, the return to normalcy in terms of cash available in them is still awaited, indicating the slow pace of remonetisation.