The Reserve Bank of India on Monday issued a notification withdrawing its limits placed on cash withdrawals from ATMs starting February 01, 2017. The notification also said that limits on withdrawing cash from current accounts, cash credit accounts and overdraft accounts will stand cancelled immediately.
While mentioning that this move was aimed at restoration of the status quo, the RBI made it clear that the restoration will be partial. "The limits on savings bank accounts will continue for the present and are under consideration for withdrawal in the near future," the RBI circular said.
While the cap on cash withdrawal at ATMs will be lifted starting February 1, the RBI has said that banks may, at their discretion, have their own operating limits just like they did before demonetisation move in November 2016.
The notification comes two days before the Union Budget is all set to be presented. The notification urges banks to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.