Reserve Bank of India on Monday removed the cap on cash withdrawals which was under strict compliance since demonetisation. The weekly withdrawals limit per account has been raised to Rs. 50,000 from the current Rs. 24,000 with immediate effect from February 20. The announcement came from the RBI's second highest desk "RBI Deputy Governor R Gandhi following last year's fiscal monetary policy review announcement, keeping its key interest rate unchanged at 6.25 percent.

Previously on Jan 30, the central bank came up with the ending of curb on current account withdrawals, cash credit accounts, and overdraft accounts. These limits were the part to support the government's demonetisation drive which came with immediate effect from midnight, 8 November 2016.

There was an upper limit on ATM withdrawals of Rs. 2,500 which was removed later and raised to Rs. 4,500.

Again in January, RBI changed the ATM daily withdrawing limit to Rs. 10,000 a day and doubling the weekly current account withdrawing limit to Rs. 1 lakh. There was an increased in the upper limits for bank withdrawals to Rs. 24,000 from Rs. 20,000 in November. While lifting the limit from Saving bank accounts withdrawals give some relief to the common man but the slow pace of remonetization will still have some impact on the common man's life.

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