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  1. Demonetisation: RBI removes withdrawal limits on ATMs for current accounts

Demonetisation: RBI removes withdrawal limits on ATMs for current accounts

In big relief to bank customers, the Reserve Bank of India (RBI) has removed withdrawal limits on ATMs for current accounts.

By: | Updated: January 30, 2017 6:07 PM
(Reuters) (Reuters)

Demonetisation: In big relief to bank customers, the Reserve Bank of India (RBI) has removed withdrawal limits on ATMs for current accounts from February 1. Currently people can withdraw Rs 1 lakh.

RBI in a statement said, that it is providing further relief to bank customers by removing the limits imposed by it in the wake of note ban order by the Centre that led to cash scarcity in the financial system.

RBI said, “On a review of the pace of demonitisation, it has been decided to partially restore status quo ante as under: Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.”

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However RBI says that the relaxation will apply only on Current Accounts and not on Saving Accounts.

Another fact to be noted is that RBI has not mentioned any relaxation in the overall weekly withdrawal limit of ₹ 24,000.

Cash crunch that continued to hit the people all over the country after the demonetisation move by the Central government, led endless queues at ATMs for withdrawing money. Moreover, people were irked as ATMs at many places continue to run out of cash.

On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. The sudden nature of the announcement—and the prolonged cash shortages in the weeks that followed—created significant disruption throughout the economy, threatening economic output. The move was heavily criticized as poorly planned and unfair, and was met with protests, litigation, and strikes.

Further inputs awaited.

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