The Reserve Bank of India on Monday issued a notification increasing the daily ATM withdrawal limit to Rs 10,000 a day per card from the earlier Rs 4,500. It also said that up to Rs 1 lakh can be withdrawn from current accounts – the limit was Rs 50,000. Both restrictions had been set after the Centre demonetised Rs 500 and Rs 1,000 notes on November 8.
The currency note denominations had made up 86% of the country’s liquidity at the time of demonetisation. The notes were made illegal tender in an attempt to smoke out black money holders and clamp down on the ciculation of counterfeit currency.
Following demonetisation, Income Tax officials said around Rs 3 lakh crore to Rs 4 lakh crore of tax-evaded income was deposited in bank accounts during the 50-day period the Centre had allowed citizens after November 8.
The country had faced a massive cash crunch after the currency ban was introduced, for which Opposition parties and several economists had severely criticised the government.