Mumbai, January 17: The Reserve Bank of India (RBI) on Monday enhanced the daily Cash withdrawal limit of Rs. 4500 from ATMs to Rs. 10,000 per card with immediate effect. But the overall withdrawal limit from saving accounts will remain unchanged at 24 thousand rupees per week.
However, the limit on withdrawal from current accounts has also been enhanced from Rs. 50,000 per week to Rs. 1,00,000. It extends to overdraft and cash credit accounts also. The step taken by RBI is to improve the cash position of traders and small businesses.
In its notification, the RBI said, the ceilings were raised following review of the current withdrawal limits. "There are no changes in the other conditions. The relaxations, as provided in our circular dated November 28, 2016, will continue," RBI said in a release.
Looking to the situations, RBI had earlier increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500 effective January 1, just a day after 50-day demonetisation period ended on December 30.
However, NRIs and Indians who were abroad during the demonetisation period have been given additional time to deposit their old currency notes. According to RBI officials, the relaxation by RBI is a clear indication that cash situation is easing.
Notably, PM Modi announced demonetisation policy on November 8 under which old Rs 500 and 1,000 currency notes were made void. The government issued new currency notes of Rs 500 and Rs 2,000 and the people were given a window of 50 days to exchange their old currency notes for new. Therefore in order to the proper circulation of new notes RBI have put certain limitations on the withdrawal limit.
Demonetisation drive is to tackle the problem of hoarding black money in the form of cash and circulation of counterfeit currency. The government is been facing harsh criticism on this decision for quite a long time.