RBI has announced that from 1st February the cash withdrawing limit will be removed. However, the weekly withdrawn limit of Rs 24,000 will continue.
The central Bank has also said that the banks can on their discretion place their own operating limit.
The limit placed on current account or cash credit account and overdraft account will stand withdrawn. However, the limit on savings account will continue.
Presently, the cash withdrawn limit is Rs 10,000 daily.
Demonetization and events that followed…
Since the time of demonetization, there has been a constant limit on cash withdrawal.The Prime Minister Narendra Modi announced demonetization on 8th November 2016.Black money is used by the terrorists in criminal activities. Demonetization is a step to eradicate black money from India. People deposited their old 500 and 1000 rs notes in the banks. New 500rs notes and 2000 notes were issued in place of old notes. Demonetization led to long queues at banks. Due to shortage of new notes, cash withdrawing limit was placed.
Initially, the withdrawing limit was Rs 2000. Subsequently, it was changed to 2500 and later to Rs 4000.
Narendra Modi in his speeches asked public to corporate in this revolutionary change and bear the temporary inconvenience for the nation.
Encouraging the cashless transactions
Since demonetisation, government has been encouraging public to go cashless. It has announced many discounts on petrol, diesel and buying railway tickets on online transactions.
Fews days ago, Government has also announced daily and weekly lucky draw to Jan Dhan account holders. This lucky draw was announced for those account holders who go for the online transactions.
We hope that all these efforts and initiatives carried by Government would be successful in eradicating poverty and black money from the economy.