In a big relief to people and small businesses, the Reserve Bank of India on Monday announced lifting of restrictions on daily withdrawal of money from ATMs and from current accounts but the weekly limit of Rs 24,000 on savings bank accounts will continue.
The Reserve Bank also promised to review the weekly limit in the near future depending on the pace of remonetisation.
"On a review of the pace of remonetisation, it has been decided to partially restore status quo ante," RBI said adding, cash withdrawal limit from ATMs stands withdrawn from February 1, 2017.
Banks, however, have been asked to fix their own limits, as has been the case before November 8, 2016, the day government scrapped high denomination currency notes of Rs 500 and 1,000.
The RBI has also removed all limits on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect.
"The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future," it said.
It further said that banks have been "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 government and the RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following demonetisation.
These limits, however, were gradually eased with RBI pumping in new notes of Rs 500 and Rs 2000.