In a big relief to people and small businesses, RBI on Monday announced lifting of restrictions on daily withdrawal of money from ATMs and from current accounts but the weekly limit of ₹ 24,000 on savings bank accounts will continue.

The Reserve Bank also promised to review the weekly limit in the near future depending on the pace of remonetisation.

"On a review of the pace of remonetisation, it has been decided to partially restore status quo ante," RBI said adding, cash withdrawal limit from ATMs stands withdrawn from February 1, 2017.

Banks, however, have been asked to fix their own limits, as has been the case before November 8, 2016, the day government scrapped high denomination currency notes of ₹ 500 and 1,000.

RBI has also removed all limits on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect.

"The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future," it said.

It further said that banks have been "urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode."

Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following demonetisation.

These limits, however, were gradually eased with RBI pumping in new notes of ₹ 500 and ₹ 2000.

Cash withdrawal restrictions partially lifted; ATM and current account limits removed while savings limits remain. The Reserve Bank withdrew ATM cash withdrawal limits and removed all limits on withdrawals from current accounts, cash credit accounts and overdraft accounts effective February 1, 2017, while savings bank withdrawal limits remain in force for the present and are under consideration for withdrawal depending on remonetisation progress. Banks may set their own ATM limits as prior to the November 8 currency changes, and were urged to encourage digitisation and non-cash payments.