Reserve Bank Of India Lifts ATM Cash Withdrawal Limits From Wednesday
The Reserve Bank of India or RBI today said it will remove curbs on daily cash withdrawals from ATMs or automated teller machines from Wednesday, February 1. It has also lifted with immediate effect, it said, restrictions on withdrawal from current accounts, cash credit accounts and overdraft accounts. Limits on withdrawing cash from savings bank accounts would however continue for now and are “under consideration for withdrawal in the near future,” the central bank said.
This means that from Wednesday, savings accounts holders will no longer be restricted to withdrawing only 10,000 rupees in a single transaction from ATMs. They will be able to withdraw Rs. 24,000 at one go, but because curbs on savings accounts haven’t been lifted yet, they cannot withdraw any more money all that week thereafter.
The RBI today said it was allowing banks to use their “discretion” in placing their own daily cash withdrawal limits at ATMs, as was the case before November 8,
Withdrawal of money from bank accounts was curbed amid a massive cash crunch that followed Prime Minister Narendra Modi’s sudden announcement on November 8 last year scrapping 500 and 1000 rupee notes.
The move, aimed at eliminating corruption and black money took out 86 per cent of the cash in circulation at the time or about 15.44 lakh crore. The RBI has sid it is printing new currency at break neck speed to overcome the shortage of cash.
The RBI chief Urjit Patel earlier this month told a parliamentary panel that the central bank has issued Rs. 9.2 lakh crore of new currency, thus replacing 60 per cent of demonetised currency.
The RBI had initially set a cash withdrawal limit of Rs. 50,000 from current accounts which was later increased to Rs. 100,000 a day.