Today Reserve Bank of India removed a transaction limit on daily cash withdrawal from ATMs, current accounts. Along with current accounts, RBI also lifted limit from cash credit accounts and overdraft accounts.
ATM transaction limit would be lifted from 1st February 2017, Wednesday. Meanwhile cash withdrawal limit on saving accounts would continue currently.
So, from 1st February, people will be able to withdraw Rs 24000 at one time in ATM. But this would not apply to the saving account holders.
After PM Modi announced demonetisation on November 8 2016, People were facing a massive cash crunch. On 8th November, PM Modi announced to demonetize Rs 500 and Rs 1000 rupee notes.
Central Government started this movement to stop corruption and black money. The RBI has said it is printing new currency at break neck speed to overcome the shortage of cash.
Earlier this month, RBI governor Urjit Patel said to parliamentary that the central bank has issued Rs. 9.2 lakh crore of new currency, thus replacing 60 per cent of demonetised currency.
The RBI had initially set a cash withdrawal limit of Rs. 50,000 from current accounts which was later increased to Rs. 100,000 a day.
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