Demonetisation: ATM cash withdrawal limits might see an end in coming February
26 January 2017,
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New Delhi: With more than 50 days pass the demonetisation, the cash crush problems faced by the nation are also seemingly fading away. In order to bring back the ease to the situation, Reserve Bank of India (RBI) is expected to take-off the cap of weekly withdrawal limits from banks as well as ATMs by the end of February.
Recently, RBI raised the ATM withdrawal limit from Rs 4,500 to Rs 10,000 a day while maintaining the weekly cap of Rs 24,000 for savings account.
Speaking on the matter to a news agency, Bank of Maharashtra executive director RK Gupta said, “I think the restrictions on withdrawal by RBI should be completely lifted by February-end or by first half of March as cash situation is easing gradually. It is entirely RBI’s decision and the central bank would decide after making holistic assessment of the situation.”
A senior public sector bank official also said that the cash crunch situation is easing and it is just the matter of time when the curb gets eased. The official said, “My hunch is that it should happen before end of the current fiscal”.
However, Urjit Patel, RBI Governor, was not able to give out a time period regarding the return of normalcy in the banking system even as the central bank stated that 60 percent of demonetised currency has been replaced.
On November 8, in a surprise move, Prime Minister Narendra Modi had demonetised Rs 500 and Rs 1,000 notes in order to put a halt on the brewing corruption and black money in the nation. Following the PM Modi’s announcement, RBI had put restrictions on withdrawal of cash from ATMs as well as from banks to deal with shortage of new Rs 500 and Rs 2,000 notes.