The Reserve Bank of India has just announced that the current ATM withdrawal limit of Rs 4,500 per day is to be increased to Rs 10,000 from Monday midnight. The weekly withdrawal limit per card remains unchanged at Rs 24,000. When it comes to current accounts, the withdrawal limits have been doubled from Rs 50,000 to Rs 1,00,000. Meanwhile, for public sector (Jan Dhan Yojana) banks customers, the withdrawal limit is of up to Rs 10,000 per month, provided they are fully KYC complaint.
Old notes can no more be exchanged from the banks but only returned and exchange is only made permissible in RBI offices until the end of March. For NRIs’ the rule is slightly relaxed and they can deposit old notes up to Rs 25,000 till June 30.
As it is the wedding season, families can withdraw up to Rs 2,5,000 from their bank accounts as well. Farmers can withdraw up to Rs 25,000 per week and agriculture traders will be able to withdraw Rs 50,000. Farmers will also be allowed a 60 days grace period to repay their loans and obtain a three per cent interest subvention.
The cash withdrawal limit was imposed by the RBI following the Central Government’s demonetisation drive in November which led to a sudden surge in digital payments in the country. Although the lack of cash flow has eased as compared to before, people are still lamenting about the access to money, as most ATMs are closed through the day. And often even waiting in long lines can’t ensure that you can withdraw a sufficient amount before the cash gets over.
The cash withdrawal limit was last revised on December 28 and had come into effect from January 1 when it had gone up from Rs 2,500 to Rs 4,500. With the weekly withdrawal limit unchanged, let’s hope that this move helps in cutting down the queues considerably and is a step towards suitably reinstating cash flow in the country.