No limits on cash withdrawals at ATMs from February 1, says RBI
However, the withdrawal limit for savings bank accounts is still Rs 24,000 a week.
There will be no post-demonetisation limits on the withdrawal of cash from ATMs from February 1, the Reserve Bank of India announced on Monday. The RBI also removed limits on current, cash credit and overdraft accounts with immediate effect. However, the Rs-24,000 limit on savings accounts will continue, though this too might be lifted soon, the bank said.
Banks have also been asked to encourage promoting digital payments and switching from cash to cashless transactions. On January 16, the RBI had raised the ATM withdrawal limit to Rs 10,000 a day from Rs 4,500. However, it maintained the weekly cap at Rs 24,000 for savings accounts. The move also comes ahead of Assembly elections in five states – Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh – which begin from February 4.
Earlier, bankers said they expected the RBI to do away with the restrictions by the end of February. After Prime Minister Narendra Modi on November 8 demonetised Rs 500 and Rs 1,000, the RBI put restrictions on cash withdrawal from ATMs and banks owing to a shortage of currency notes.