The Reserve Bank of India has raised the withdrawal limits from ATMs to Rs 10,000 per day per card from the present Rs 4,500. It has also increased the limit for withdrawal from current accounts to Rs 100,000 from Rs 50,000, it said in a notification issued to the banks.
"On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect as under: (i) The limit on withdrawals from ATMs has been enhanced from the current limit of Rs.4,500/- to Rs.10,000/- per day per card (It will be operative within the existing overall weekly limit).
(ii) The limit on withdrawal from current accounts has been enhanced from the current limit of Rs.50,000/- per week to Rs.1,00,000/- per week and it extends to overdraft and cash credit accounts also," the RBI said in the notification.
On a weekly basis, there is a limit of Rs 24,000 per card.
The move will be a relief for the customers, who have been hoarding cash. However, the fears of a cash shortage is unlikely to go completely as the central bank did not give any details on notes printing or supply.
The queues before the banks and ATMs to withdraw cash which continued to be lengthy for more than a month after the demonetisation of Rs 500 and Rs 1,000 notes from 9 November, have by and large reduced of late. However, not all ATMs are still dispensing cash and so the cash hoarding by customers continued even after the RBI relaxing the withdrawal limit from 1 January.
"It is a welcome move," Shyam Srinivasan, MD of Federal Bank, told CNBC-TV18 in an interview soon after the RBI's notification. According to him, his bank does not witness any queue nowadays. He expects 75 percent normalcy to return in cash circulation by the end of January.
"Cash availability has improved materially but of course supply of Rs 500 notes could be improved," he told the TV channel. The central bank has not given a break up of new Rs 500 and Rs 2,000 injected into the system after demonetisation.
The RBI had increased the withdrawal limit last on 1 January to Rs 4,500 per day from Rs 2,500 earlier.
Following demonetisation of old Rs 500 and 1,000 notes on 9 November, limits had been imposed on withdrawal of cash from banks as well as ATMs.
Published Date: Jan 16, 2017 17:55 PM | Updated Date: Jan 16, 2017 18:00 PM