All limits on savings bank cash withdrawals post-demonetisation ended on Monday, as had been announced by the Reserve Bank of India (RBI) last month.
In a two-stage process, the weekly withdrawal limit per account had been raised to Rs. 50,000, from Rs. 24,000, with effect from February 20, and all limits on ATM withdrawals were slated to cease from March 13.
The announcement had been made by RBI Deputy Governor R Gandhi following the fiscal year’s last monetary policy review announcement by the central bank in February, when it kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government’s demonetisation drive.
On January 30, the central bank had ended all curbs on withdrawals from current accounts, cash credit accounts and overdraft accounts.
The limits were placed following the government’s move on November 8 to demonetise Rs. 1,000 and Rs. 500 notes, taking out 86 per cent of the currency in circulation. The upper limit at ATMs was just Rs. 2,500 initially and was later raised to Rs. 4,500.
In January, the Reserve Bank of India had hiked the daily ATM withdrawal limit to Rs. 10,000 and doubled the weekly current account withdrawal limit to Rs. 1 lakh.
The upper limit for weekly withdrawal from bank accounts had been raised to Rs. 24,000 from Rs. 20,000 in November.
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.