The Reserve Bank of India has removed restrictions on cash withdrawals from savings account. RBI had already made an announcement last month that cash withdrawal limits on savings accounts will be completely abolished with effect from March 13. The banking regulator had been reviewing the withdrawal limit in a phased manner. Initially, cash withdrawal limit was hiked to Rs 50,000 on February 20.
The cash withdrawal limit at automated teller machines (ATMs) was earlier increased to Rs10,000 per day per saving bank account on 16 January. The limit was set within the existing overall cash withdrawal cap of Rs24,000 per week per account at both banks and ATMs.
Despite the government saying that remonetisation has happened people continue to face cash crunch as many ATMs run out of cash while others are loaded with currency notes of higher denomination.