remonetisation, demonetisation, cash crunch, cash-to-gdp ratio, bibek debroy, niti aayog, modi news
New Rs 500 currency notes being withdrawn at an ATM.IANS

The Reserve Bank of India (RBI) on Monday raised the ATM withdrawal limit to Rs 10,000 per day from the earlier limit of Rs 4,500.

The limit on withdrawal from current accounts has also been increased to Rs 1 lakh per week from the original limit of Rs 50,000 per week.

However, the withdrawal limit for savings account remains unchanged at Rs 24,000 per week.

The RBI had earlier increased the ATM withdrawal limit from Rs 2,500 to Rs 4,500 from January 1, 2017 and had said that all weekly withdrawals must be in the denomination of Rs 500 notes.

Prime Minister Narendra Modi, in a televised address on November 8, had announced his decision to demonetise currency notes of Rs 500 and Rs 1,000 in an attempt to curb the menace of black money in the country. 

The move was slammed by most of the opposition parties and entailed several protest marches and rallies. The Opposition also protested against the move outside Parliament and demanded PM Modi to explain his decision in Parliament.

Demonetisation led to a complete washout of the Winter Session of Parliament with the Opposition demanding that the prime minister be present in the House and address their concerns. Former Prime Minister Manmohan Singh also slammed the decision saying: "In the long run, we are all dead."

Soon after the November 8 announcement, long queues were seen outside banks and ATMs as people lined up to withdraw cash, deposit the old notes or exchange them for the new Rs 2,000 notes. Several deaths were also reported. 

ATMS across the country were recalibrated to dispense the Rs 2,000 notes introduced by the RBI. The central bank, later, also issued new notes of Rs 500 with a different design.