In some relief to businesses, the Finance Ministry has said that limit for weekly withdrawal from current accounts has been increased to Rs 50,000. Department of Economic Affairs Secretary Shaktikanta Das has said that for business current accounts that are at least 3 months old, as much as Rs 50,000 can be withdrawn in a week. This, he said, would help pay wages of workers. Additionally, Shaktikanta Das said that the cash holding limit of banking correspondents will be increased to Rs 50,000. The government is repeatedly reviewing the cash situation in the economy, given the inconvenience that is being caused to the common man.
Yesterday, the government increased the cash withdrawal limit at ATMs to Rs 2,500 per day. The limit for exchange of old Rs 500 and Rs 1000 notes was also enhanced to Rs 4,500 from Rs 4,000 earlier. The limit that had been imposed for daily withdrawal from banks was removed. Now, an individual can withdraw as much as Rs 24,000 from his/her bank account in one week. Banks have been advised to increase the Cash Withdrawal limit at ATMs from the existing Rs 2000 to Rs 2500 per day in the recalibrated ATMs, other ATMs will continue to dispense Rs 50 and Rs 100 notes until they are recalibrated, the Finance Ministry said.
In the first four days (from November 10th to 13th, upto 5 pm) about Rs 3.0 lakh crore of old Rs 500 and Rs 1000 bank notes have been deposited in the banking system and about Rs 50,000 crore has been dispensed to customers by either withdrawal from their accounts or withdrawal from ATMs or by exchange at the counter. Within these four days, the banking system has handled about 18 crore transactions, the Finance Ministry said.
To ease the ensuing liquidity crunch, the Chief Secretaries of states have been requested to identify rural pockets, if any, where availability of cash has been a problem and provide all support to the Banks and Post Offices in order to ensure the last mile distribution of small denomination of notes is done through mobile banking vans and Banking Correspondents (BCs). Meanwhile, the issuance of the new series of Rs 500 notes has also commenced.