New Delhi, February 20: The Reserve Bank of India (RBI) today enhanced the weekly cash withdrawal limit of Rs.24,000 from ATMs to Rs.50,000. An RBI notification, issued on January 30, announced that from February 20 the cash withdrawal limit for savings accounts will be raised to Rs 50,000 from Rs 24,000 a week.RBI has also said that all limits on cash withdrawals from Savings Bank Account will be withdrawn from 13th of next month. Till now, there is no limit on current account and there is a cap of Rs 50,000 for farmers a week and Rs 2.5 lakh for marriage.
Notably, PM Modi announced demonetisation policy on November 8 under which old Rs 500 and 1,000 currency notes were made void. The government issued new currency notes of Rs 500 and Rs 2,000 and the people were given a window of 50 days to exchange their old currency notes for new. Therefore in order to the proper circulation of new notes RBI has put certain limitations on the withdrawal limit.
Demonetisation drive is to tackle the problem of hoarding black money in the form of cash and circulation of counterfeit currency. The government is been facing harsh criticism on this decision for quite a long time.