RBI enhances cash withdrawal limit from ATMs to Rs 10000 per day
Limit on currency withdrawal was imposed after the Union Government on 8 November 2016 announced the scrapping of Rs 500 and Rs 1000 banknotes.
The Reserve Bank of India on 16 January 2017 raised the daily Cash withdrawal limit of Rs 4500 from ATMs to Rs 10000 per card with immediate effect. However, the overall withdrawal limit from saving accounts will remain unchanged at 24 thousand rupees per week.
In a notification, the RBI said, the ceilings were raised following review of the current withdrawal limits.
Highlights of the enhancement
• The limit on withdrawal from current accounts has also been enhanced from Rs 50000 per week to Rs one lakh. It extends to overdraft and cash credit accounts also.
• There are no changes in the other conditions. The relaxations as provided in our circular dated 28 November 2016 will continue.
Earlier, the RBI had raised the ATM withdrawal limit from 2500 rupees to 4500 rupees from 1 January 2017.
Following demonetisation of old Rs 500 and Rs 1000 banknotes on 8 November 2017, the Reserve Bank of India placed limits on cash withdrawal. The demonetisation period of 50-day ended on 30 December 2016.
As per reports, this announcement of demonetisation by the Prime Minister Narendra Modi invalidated about 86 per cent of notes in circulation.
Comment: This enhancement in the cash withdrawal limit from Rs 4500 to Rs 10000 per day signals that the post-demonetisation cash crunch is easing.
What helped RBI in enhancing the limit on withdrawal?
RBI was able to improve the cash withdrawal limits from initial Rs 2000 to Rs 10000 per week due to the efforts made by the employees of the currency presses. As per report, since demonetisation, the printing presses were functioning seven days round the clock. The efforts were made to help the country in coming out of the cash crunch situation.
As per reports, the RBI Note Mudran printing press in Mysuru has broken all its past record by printing the highest number of currency notes in December 2016. President of Note Mudran Limited Employees Union, A Ramdass said that 10.9 million notes were printed on a single day, which also surpassed the previous world record of 8.7 million notes printed in an American currency printing press.