"On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under… [limits] on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts stand withdrawn with immediate effect," the bank said in a statement.
Bank customers will be able to again use cash machines without restrictions starting from February 1, while withdrawal limits of $353 per week on savings accounts remain in place.
The currency reform, aimed at fighting corruption, the shadow economy, forgery and terrorism, started in November 2016. The cash crunch meant that banknotes with the largest nominal values of 500 and 1000 rupees (about $8 and $15) were rapidly withdrawn from circulation with some eligible to be exchanged for new notes and the rest to be deposited in bank accounts subject to withdrawal limits. A number of opposition parties have expressed their disagreement with the way the reform had been implemented.