Mumbai: The first stage of the two-stage lifting of limits on cash withdrawals from savings bank accounts became effective on Monday, with the weekly limit rising to Rs 50,000 per account from Rs 24,000. Cash withdrawal limits are slated to cease from March 13.
Reserve Bank of India (RBI) Deputy Governor R. Gandhi announced the lifting of limits on February 8.
On January 30, the RBI ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.
The limits were placed following the November 8 demonetisation of Rs 1,000 and Rs 500 currency notes. The upper limit for withdrawals from ATMs was Rs 2,500 initially and was later raised to Rs 4,500.
In January, the RBI hiked the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly Current Account withdrawal limit to Rs 1 lakh.
The upper limit for weekly withdrawal from bank accounts was raised to Rs 24,000 from Rs 20,000 in November.
The lifting of ATM withdrawal limits from March 13 will represent a coming full circle for these machines.