The Reserve Bank of India on Monday raised the withdrawal limit to Rs 10,000 per day from Rs 4,500 per day. The RBI said that the change would be operative within the existing overall weekly limit. The withdrawal limit from current accounts was also raised from Rs 50,000 per week to Rs 1 lakh per week, which the RBI said also extended to cash credit and overdraft accounts. The RBI released a notification on its official website saying that there have no further changes been made to any other conditions and the relaxations provided on November 28, 2016 were to continue.
Earlier on December 31, 2016, following the completion of 50 days of demonetization, the RBI had raised the withdrawal limit from ATMs. The Narendra Modi government, during the announcement of demonetization on November 8 had revealed that the withdrawal limit at ATMs would be reduced to Rs 2,500 per day which had caused a massive panic in the country. For the next 50 days, ATMs and banks throughout the country saw huge queues, lasting for hours as the nation went through its biggest cash crunch.
While the move was criticised by many and applauded likewise amongst a crowd that remained largely divided on the implementation and the implication of the drive, it has to be noted that the situation vastly improved as the circulation of the new currency notes gaining momentum. Meanwhile, the BJP government at the centre stood firmly with its decision of the demonetisation drive citing the rooting away of black money from the system and the dream of achieving a cashless economy. And while neither can be termed as an absolute success, with the lack of planning and execution, certain steps were taken by the government to ease the public’s woes.