Reserve Bank of India decided on Monday to withdraw the limits imposed on cash withdrawals with immediate effect. The move is welcomed by many as people can now breathe a sigh of relief.

Limits placed on withdrawals from current accounts, cash credit accounts and overdraft accounts will be taken back with immediate effect. But, the ATM transaction limits will be considered null from 1st February 2017.

"Limits placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016," the official letter addressed by P. Vijaya Kumar, Chief General Manager said.

"Limits placed on cash withdrawals from Current accounts/Cash credit accounts/Overdraft accounts stand withdrawn with immediate effect," the letter added.

The limits on savings bank accounts will continue for a while and are still under consideration for withdrawal in coming days.

It’s been almost three months since the decision of demonetization was announced on 8th November last year.

As the assembly polls in five states are coming nearer, the Election Commission of India had requested the RBI to increase the cash withdrawal limits for electoral candidates in the poll-bound states. The RBI had refused to give any concession for any specific state. This decision will now be applicable all over the country.