Rini Sharma
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New Delhi, Jan 16: The Reserve Bank of India on Monday raised the ATM withdrawal limit to Rs 10,000 per day from Rs 4,500 earlier.
The move came as a good news, months after demonetisation of high denomination notes was announced by Prime Minister Narendra Modi on November 8, 2016 in a bid to fight corruption and put a check on black money.
#FLASH ATM withdrawal limits enhanced from current limit of Rs 4500 to Rs 10,000 per day, per card.
— ANI (@ANI_news) January 16, 2017
However, there has been no change in the weekly withdrawal limit, which stands at Rs 24,000, including from ATM, for individuals (Rs 50,000 in case of small traders).
“On a review of limits placed on withdrawals from ATMs, it has bee decided to enhance the same, with immediate effect. 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,” an RBI release said.
The RBI also enhanced the limit on withdrawal from current accounts from current limit of Rs 50,000 per week to Rs 1 lakh per week.
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“There are no changes in the other conditions. The relaxations as provided in our circular dated November 28, 2016 will continue,” the statement further said.
Earlier on December 30, the Reserve Bank had enhanced the cash withdrawal limit from ATMs to Rs 4,500 per day from the current Rs 2,500 effective January 1.
The RBI had imposed the limits on withdrawal of cash in November after the government announced a ban on all high-value currency notes, precisely Rs 500 and Rs 1,000, and said it would replace them with new notes.
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The withdrawal limits are unlikely to be removed completely until the RBI has supplied the economy with sufficient amount of new notes, analysts have said.
It is being believed that the enhanced withdrawal limit will help banks to bring down the transaction cost which has now been waived off by the central bank till March.
While the effect of the cash crunch was felt severely during the first fifty days after note ban move, the situation has been improving significantly and the government is slowly restoring normalcy by removing all imposed limits on transactions.
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