RBI raises ATM withdrawal limit to Rs 10,000

Mumbai  

With the improvement in cash situation, the Reserve Bank on Monday more than doubled the daily ATM withdrawal limit to Rs 10,000 but retained the weekly ceiling at Rs 24,000 which bankers feel will be gradually relaxed. RBI also doubled the weekly withdrawal limit from current accounts to Rs 1 lakh from Rs 50,000 – a move which will ease cash position of traders.

“On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect…,” the central bank said in a notification. 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.

According to Bank of Maharashtra Executive Director R K Gupta, the relaxation by RBI is a clear indication that cash situation is easing. About 75 per cent of ATMs of the bank are functioning round the clock, he said, adding, all banks are pushing more than 40 per cent of their cash into rural and semi-urban area to ensure adequate cash availability.

Cash position is getting better day by day and rush at ATMs has come down significantly, said another senior official of a public sector bank. However, the limit is something that RBI takes a call and complete removal of the limit would be done after due diligence and feedback from all the banks, the official added.

“ATM cash supply situation is near normal. About Rs 8,000 crore on daily basis is being fed across the country. We are gearing up for higher loading frequency and meet the requirement,” said Rituraj Sinha, the president Cash Logistics Association.

“The limit on withdrawals from ATMs has been enhanced from the current limit of Rs 4,500 to Rs 10,000 per day per card,” RBI said, adding that it will be operative within the existing overall weekly limit.

The limit on withdrawal from current accounts has been enhanced from the current limit of Rs 50,000 per week to Rs 1 lakh per week and it extends to overdraft and cash credit accounts also, RBI said. RBI had placed limits on cash withdrawals following demonetisation of old Rs 500 and Rs 1,000 notes on November 9, 2016.

The demonetisation 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.