New Delhi, March 14: Finally! The Reserve Bank of India (RBI) has lifted all the cash withdrawal limits from banks and ATMs four months after they were imposed following the demonetization of old Rs 500 and Rs 1,000 notes, which created a currency shortage across the country. However, it’s a big relief for the people of a nation and mainly for the business persons etc.
Earlier, on January 30 of this year, RBI had revoked limits on cash withdrawal from ATMs while the weekly limit for savings accounts was raised from Rs 24,000 to Rs 50,000. The RBI had also removed limits on current, cash credit and overdraft accounts.
Gradually, the central bank lifted restrictions. On January 16, the RBI had raised the ATM withdrawal limit to Rs 10,000 a day from Rs 4,500. But, it maintained the weekly cap at Rs 24,000 for savings accounts. This move came ahead of Assembly elections in five states that are Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh.
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.
Demonetization 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.