After more than four months of agony and anxiety over demonetisation, the Reserve Bank of India on Monday removed the restrictions imposed on bank ATM withdrawals, bringing the situation back to pre-November 8, 2016 period.
The ban on old Rs.500, Rs,1000 Notes was imposed on Novemebr 8, 2016 that led to monetary choas and huge business loss for the country for over four months, led to huge corruption among the bank staff and finally it ended a day after win for BJP in Uttar Pradesh.
The initial limit was Rs.2000 per week, later Rs 24,000 per week and was made Rs 50,000 in February, besides several restrictions imposed on bank withdrawals of cash from time to time. The government has repeatedly asked people to bear the short-term pain for long-term benefits.
In its notification on Monday, the RBI had also removed all limits on current account and overdraft accounts with immediate effect and clearly stated that savings bank accounts will continue to be under certain withdrawal "restrictions in the near future.”
In another report on assessment of Demonetisation, the Central Bank listed measures taken so far to mitigate ‘Hardships’ as below:
Calibrated Adjustment of Limits for Exchange of Specified Bank Notes (Read olf Rs500 and Rs1000 notes)
The exchange facility of specified bank notes (SBNs) at banks, which was initially allowed up to ₹ 4,000, was increased to ₹ 4,500. It was reduced to ₹ 2,000 (effective November 17, 2016). This facility was subsequently discontinued effective November 25, 2016 at banks, but was available at RBI counters up to December 30, 2016.
Withdrawal Limit from Automated Teller Machines (ATMs)
The limit for cash withdrawal from ATMs, which was initially set at ₹ 2000 per day, was enhanced to ₹ 2500 per day and further to ₹4500 and ₹10,000 and was withdrawn from February 1, 2017.
Gradual Relaxation of Limits on Withdrawal from Bank Accounts
The limit of withdrawal from saving account, which was initially stipulated at ₹ 20,000 per week, was revised to ₹ 24,000 and further to ₹ 50,000 per week (effective February 20, 2017). Effective March 13, 2017, there will be no limit on cash withdrawals from savings accounts.
Current account withdrawal of ₹ 50,000 per week was enhanced to ₹ 1,00,000 per week effective January 16, 2017. Limit on cash withdrawals from current accounts was removed effective January 30, 2017.
Cash withdrawals from the bank deposit accounts up to ₹ 2,50,000 were allowed from November 21, 2016 to meet wedding related expenses.
Deposit of SBNs
Deposits of SBNs in bank accounts were permitted up to December 30, 2016.
The facility for exchange of SBNs for the residents, who could not avail the facility from November 9 to December 30, 2016 on account of their absence from India during the aforementioned period, was made available at the RBI up to March 31, 2017 and for non-resident Indian citizens up to June 30, 2017.
Banks were advised to waive ATM charges on withdrawals between November 10 and December 30, 2016.
The limit for cash withdrawal at POS (for debit cards and open system prepaid cards issued by banks in India) was made uniform at ₹ 2000/- per day across all centres for all merchant establishments enabled for this facility and customer charges were not to be levied on such transactions from November 18, 2016 to December 30, 2016.