RBI removes curbs on cash withdrawals: Three things to know

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Updated: Jan 30, 2017 7:53 PM

The Reserve Bank of India, through a notification on Monday, removed the restrictions it had imposed on cash withdrawals post the demonetisation of high-value notes.

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The Reserve Bank of India, through a notification on Monday, removed the restrictions it had imposed on cash withdrawals post the demonetisation of high-value notes.
In a notification addressed to the heads of all banks, the apex bank said that “on a review of the pace of remonitisation, it has been decided to partially restore status quo ante.”

As per the notification,
1. Limits placed earlier on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts stand withdrawn with immediate effect.

2. The limits on savings bank accounts will continue for the present and are under consideration for withdrawal in the near future.

3. Limits on cash withdrawals from ATMs stand withdrawn from February 1, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016.

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Further, “banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode,” it said.
This means that limits placed on cash withdrawals from current, cash credit and overdraft accounts stand withdrawn with immediate effect. Although limits on savings bank accounts will continue for the present, from February 1 you can withdraw from ATMs as much cash as you wish, subject to the discretion of banks.
The ATM withdrawal limit was recently raised to Rs 10,000 a day by the Reserve Bank, but weekly cap at Rs 1 lakh for current account holders and Rs 24,000 for saving account holders remained.

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