Relaxing the grip on capital post the demonetisation decision, the government announced on Monday that the weekly withdrawal limit which was earlier set at Rs 24,000 will be increased to Rs 50,000.
The Reserve Bank of India, whose relationship with the Central government has been strained after demonetisation, had announced on February 8 that the restrictions on cash withdrawals from Saving Bank accounts (also accounts under PMJDY) will be removed.
The weekly withdrawal limit, which was earlier set at Rs 24,000, will now be set at Rs 50,000. And from March 13, 2017, the imposed withdrawals on Savings Bank accounts will be removed in entirety.
The Reserve Bank had placed certain limits on cash withdrawals from Savings, Current, Cash credit, Overdraft accounts and ATM withdrawals after an increase was witnessed in Specified Bank Notes (SBN) withdrawal.
Prime Minister Narendra Modi on November 8, 2016 announced that the Rs 500, Rs 1000 notes will cease to be legal tender. Many lives were lost post the announcement.