New Delhi: In a relief to the general public and small businesses, the RBI on Monday lifted restrictions on daily withdrawal of money from ATMs and current accounts. However, the weekly limit of cash withdrawal of '24,000 on savings bank accounts will continue for some more time.
The RBI withdrew cash withdrawal limit on current accounts and overdraft accounts with immediate effect. It is generally businesses who operate current account and overdraft accounts. Cash limit imposed on ATMs will be withdrawn from Wednesday. However, the RBI asked bank to fix their own limits on cash which can be withdrawn from ATMs in a day, as has been the case before November 8, 2016, when government junked high denomination currency notes of Rs 500 and Rs 1,000.
Meanwhile, the Election Commission is now likely to ask candidates contesting Assembly polls in five states to open current accounts to tide over currency crunch in meeting election expenses.
This will resolve the controversy brewing between EC and RBI over enhancing the cash withdrawal limit for candidates to Rs 2 lakh per week.
