No limit on withdrawals from ATMs, current accounts from Feb 1

The Reserve Bank of India on Monday announced lifting of restrictions on daily withdrawal of money from ATMs and from current accounts from February 1, while retaining the weekly withdrawal limit of Rs 24,000 on savings bank accounts.

The Reserve Bank also promised to review the weekly limit in the near future depending on the pace of re-monetisation.

“On a review of the pace of re-monetisation, it has been decided to partially restore status quo ante,” RBI said adding, cash withdrawal limit from ATMs stands withdrawn from February 1, 2017.

The RBI had earlier revised the daily withdrawal limit from Rs 4,500 to Rs 10,000 on January 16.

Banks, however, have been asked to fix their own limits, as has been the case before November 8, 2016, when the government demonetised the high value currency notes of Rs 500 and Rs 1,000.

RBI has also removed all limits on cash withdrawals from current accounts, cash credit accounts and overdraft accounts with immediate effect.

“The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future,” it said.

It also said that banks have been “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.”

Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following demonetisation.

Later, the limits were gradually eased as RBI pumped in new notes of Rs 500 and Rs 2000.

Meanwhile, the RBI and Election Commission (EC) have also locked horns over the relaxation of cash withdrawal limits for candidates fighting the upcoming assembly elections.

EC asked for the limits to be removed, but the RBI declined the same.

With agency inputs