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RBI Lifts Restrictions on Withdrawals from ATMs, Current Accounts

The Reserve Bank of India has lifted the restrictions on cash withdrawals from bank accounts and ATMs, in a sign that the pace of remonetisation is picking up.

Tushar Dhara | News18.com

Updated:January 30, 2017, 10:21 PM IST
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RBI Lifts Restrictions on Withdrawals from ATMs, Current Accounts
A file image of a man leaving after getting money from an ATM (PTI Photo).

New Delhi: The Reserve Bank of India (RBI) has lifted the restrictions on cash withdrawals from bank accounts and ATMs, in a sign that the pace of remonetisation is picking up.

In a statement on its website, the central bank said that restrictions on withdrawal of cash from current accounts, cash credit and overdraft accounts have been lifted with immediate effect.

Further, limits on cash withdrawals from ATMs will be withdrawn from February 1, 2017.

However, the limits on savings bank accounts will continue for the present, until further review by the RBI.

The latest directive from the RBI is an indication of its confidence in the pace of supplying new currency to banks and ATMs across the country.

On November 8, the RBI imposed limits on the withdrawal of cash from bank accounts and ATMs following the decision to demonetise, as it feared it could lead to mass withdrawals of cash.

The central bank move also comes amidst RBI rejecting a a request by the Election Commission to lift withdrawal limits for the candidates in five poll-bound states and a day ahead of the Budget Session of Parliament.

The central bank said the limits on cash withdrawals from current accounts or cash credit accounts or overdraft accounts is withdrawn with immediate effect.

RBI, however, said banks may, at their discretion, have their own operating limits as was the case before November 8, when the note ban was imposed.

Following demonetisation, RBI had put withdrawal limit Rs 2,000 per day from ATMs and Rs 10,000 per week. Customers holding a current or overdraft or cash credit accounts, were allowed to withdraw up to Rs 50,000 in a week.

Towards November end, RBI increased the caps on savings bank withdrawals to Rs 24,000 a week.

Early January, it was further relaxed to Rs 4,500 per day from ATMs, but retained the weekly withdrawal limits. On January 16, RBI enhanced the ATM withdrawals further to Rs 10,000 daily, while keeping the weekly limits at Rs 24,000.

The central bank also enhanced the limit on withdrawal from current accounts, overdraft and cash credit accounts to Rs 1,00,000 per week.

(With inputs from PTI)

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