RBI Eliminates Cash Withdrawal Limit From Feb 1
The reserve bank of India eliminates cash withdrawal limit on all the current accounts while retaining the limit of Rs.24,000 on savings account thereby easing the demonetization grip. The new rule will be applicable from 1st February onwards. The withdrawal limits on savings account will continue and RBI proposes to review it in future.
A notification issued by the RBI stated: "On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under: Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.
The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.
Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.
The withdrawal limits on transactions from ATM and bank account were imposed following the demonetization of old currency worth Rs.500 and Rs.1000 on 9th November. From January 1, the withdrawal limits were boosted from Rs.2500 per day to Rs. 4500 per day and now from February 1 current accounts will be free of withdrawal limits while the savings account will continue its weekly limit of Rs.24,000.