All Cash withdrawal limits has been removed by Reserve Bank of India
According to reports, Reserve Bank of India has removed all cash withdrawal limits from customer bank account. The decision came of the occasion of Holi. The apex bank has officially removed all the cash withdrawal limits and has let go of the last indicator of the two months of demonetization.
Notably, the RBI had removed the limits of withdrawals from automated teller machine on 1st February, it was still within the overall limit of Rs.24, 000 a week from saving accounts. On the other hand, in the case of current accounts, the weekly withdrawal limit was earlier set at Rs.50, 000.
On November 8, 2016, PM Modi had announced demonetization and had banned 500 and 1000 notes. The 50- day demonetization period ended on December 30th. However, the central government is yet to declare the total numbers of notes removed and how many new notes were pumped in the circulation. After the announcement, the nation faced a huge cash crunch which led to long queues outside the ATMs and chaos in the Banks.
The situation gradually improved in the country. Notably, demonetization which was initially aimed at countering black money hoarders in India was later touted to be the big push to digital payments for the country. The plastic money and digital mode of payments saw a spike for a short period of time in India but as currency notes find their way back into the pockets of the population at large, people have stopped using the digital modes of payment.
Now, the situation is under control and there is no more cash problem in India. Also, PM’s decision of demonetization has proved a milestone for the party as BJP scripted history in Uttar Pradesh election.