Mumbai: The Reserve Bank of India (RBI) removed cash withdrawal limits at ATMs from 1 February and on current accounts and overdraft accounts with immediate effect.
After demonetisation, the government had placed limits on cash withdrawal in wake of a cash crunch in the country. The RBI had progressively increased the cash withdrawal limits at ATMs from Rs2,000 on 8 November to Rs10,000 per card, per day as of 16 January.
“However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016,” the RBI said in a notification released on its website on Monday.
“The limits on saving bank accounts will continue for the present and are under consideration for withdrawal in the near future,” it added.
For current account holders the withdrawal limit earlier stood at Rs1 lakh per week and for saving account holders Rs24,000.
“…banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode,” the regulator said in its notification.