NEW DELHI: Limits on ATM withdrawals will be partially lif ted from Feb 1, India`s central bank said Monday, as a cash crunch sparked by the ban on high-value rupee notes eases.

The Reserve Bank of India capped cash withdrawals after Prime Minister Narendra Modi`s shock decision in November to take all 500 and 1,000 rupee notes out of circulation 86pc of the currency in the cash-reliant nation.

The move triggered long queues outside banks and ATMs which ran dry within hours as hundreds of thousands of people thronged to them every day to withdraw the initial daily limit of 2,000 rupees ($29).

The RBI later increased the amount to 4,500 rupees, and then to 10,000 rupees earlier this month as long lines and crowds at banks eased.

Limits placed on customers who have current accounts or overdraft accounts `stand withdrawn from February 01, 2017,` the central bank said in a statement.-AFP