Demonetisation: RBI raises daily ATM cash withdrawal limit to Rs 10,000

Mangalore Today News Network

New Delhi, Jan 17, 2017: The Reserve Bank of India (RBI) on Monday raised the ATM cash withdrawal limit to Rs 10,000 per day but left the weekly ceiling of Rs 24,000 unchanged.

The central bank also increased the withdrawal limit for current accounts to Rs 100,000 per week from Rs 50,000 earlier. The changes would kick in with immediate effect, a release said.

“On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same with immediate effect,” the RBI said.

These limits were imposed after the government on November 8 announced scrapping of Rs 500 and Rs 1,000 banknotes. The other restrictions announced over the next 50 days remain in place.

On December 31, the RBI had raised the ATM withdrawal limit from Rs 2,500 to Rs 4,500.

HT wrote on January 12 that the central bank could further relax the norms as cash supply to ATMs had improved considerably and was expected to normalise by month-end.

West Bengal chief minister Mamata Banerjee did not appear impressed with the new rule. A fierce opponent of the demonetisation move, she tweeted:

According to Bank of Maharashtra executive director RK Gupta, the relaxation by the RBI was a clear indication that the cash situation in the country was easing.

Cash position was getting better day by day and the rush at ATMs had come down significantly, said another senior official of a public sector bank.

Prime Minister Narendra Modi’s surprise announcement to recall the high-value banknotes sparked chaos and confusion across the country, with millions of consumers queued outside banks and ATMs to change a limited number of old notes for new ones or withdraw cash.

The government said the move was aimed at rooting out black money and corruption.