Restrictions on cash withdrawal likely to be lifted before Union Budget 2017

The government is likely to lift restrictions on cash withdrawal ahead of Union Budget 2017.

Written by: Aadil Ikram Zaki Iqbal

Updated: January 24, 2017, 3:02 PM IST

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https://www.india.com/news/india/restrictions-on-cash-withdrawal-likely-to-be-lifted-before-union-budget-2017-1761801/ Copy

रोजगार के अवसर बढ़ेंगे

New Delhi, Jan 16: The government is likely to lift restrictions on cash withdrawal ahead of Union Budget 2017. After assessing the situation, the government may remove all restrictions on cash withdrawal through cheques. The key decision on cash withdrawal limit would be taken before the presentation of the Union Budget 2017 on February 1. The restrictions on cash withdrawal from ATM would be lifted at the later stage.

According to a report of a Hindi new portal, the government is considering easing restrictions on cash withdrawals through cheques. At present, a current account holder can withdraw Rs 50000 by cheque per week. If you have a saving account, you can withdraw weekly Rs 24000 by cheque. The government is yet to decide when to lift restriction on cash withdrawal from ATMs.

The strict withdrawal limits which followed the surprise demonetisation announcement by Prime Minister Narendra Modi had created chaos across the country. After the 50-day period for returning the old notes to banks with restrictions on cash withdrawals through ATMs and from saving/current account ended on December 30, the Reserve Bank of India (RBI) increased the daily cash withdrawal limit of Rs 2,500 per card to Rs 4,500 from ATMs. However the central bank did not make any changes to the weekly withdrawal limit of Rs 24,000 through cheques at bank branches.

There has been no change in the weekly withdrawal limit, which stands at Rs 24,000, including from ATM, for individuals and Rs 50,000 for small traders post demonetisation.