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RBI removes withdrawal limits, signals normalisation
The Reserve Bank of India (RBI) on Monday, partially ended the limits on withdrawals from ATMs that have been in place for nearly three months now.

The RBI has now removed the limits on daily withdrawal from ATMs for savings accounts even though the weekly limit of Rs 24,000 from savings bank accounts has been retained. Also, all limits on current accounts have been removed. While the order regarding savings accounts will come into effect from February 1, the order regarding the removal of withdrawal limits from the current accounts, cash-credit accounts and overdraft accounts has already been put in place with immediate effect.

"On a review of the pace of remonetisation, it has been decided to partially restore the status quo ante," RBI said in a notification issued on Monday.

"The limits on savings bank accounts will continue for the present and are under consideration for withdrawal in the near future. Limits on cash withdrawals through ATMs is being withdrawn from February 1. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode," the notification added.

But to be able to manage the cash crunch, RBI has given the banks to put in their own operating limits.

Limits...placed on cash withdrawals from ATMs stand withdrawn from February 1, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016," RBI said.

Last week, RBI had said that almost 50 per cent of the banned notes have been replaced with the new ones. Also a report by SBI had said that approximately 70 per cent of remonetisation would be completed by February end.

The latest notification seems to be a signal that things are getting back to normal after the government had announced on November 8 that old Rs 500 & Rs 1000 notes are no more legal tender.

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