The daily limit of ATM withdrawal of banknotes on 1 January 2017 went up to Rs. 4500 daily from the existing Rs 2500. This enhancement of the limit, which will help the common man in relaxing themselves from the long lines near ATMs, can be treated as a New Year gift from the Reserve Bank of India (RBI).
In its notification, RBI said that there has been no change in the weekly withdrawal limit, which stands at Rs 24000, including from ATM, for individuals and Rs 50000 in the case of small traders. It further said such disbursals will predominantly be in the denomination of Rs 500.
Earlier on 30 December 2016, RBI announced an increase in the daily limit of ATM withdrawal to Rs 4500 from current Rs 2500. It in its notification said that the increment in withdrawal will come into effect from 1 January 2017.
Citizens of India were facing a cash crunch problem since 8 November 2016, the day when the Prime Minister announced demonetisation of biggest currency notes of India, that is, Rs 1000 and Rs 500. Following demonetisation of old Rs 500 and Rs 1000 notes limits had been imposed on withdrawal of cash from banks as well as ATMs.
Earlier in the day, the RBI also permitted the White Label ATM Operators (WLAOs) to source cash from retail outlets. Maximum White Label ATMs were running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank (s).
Besides, as part of its efforts to promote digital payments, the RBI also extended the period of enhanced Prepaid Payment Instruments (PPI) limit of Rs 20000. The notification said that it has been decided to extend the measures till the completion of review of the PPI guidelines. The decision as taken in view that Bank is undertaking a comprehensive review of the guidelines and framework for PPI issuance in the country.
At present, 47 non-bank entities and 45 banks are operating payment systems for PPI.