Cash withdrawal limit for ATMs,current accounts removed: RBI

Mumbai: The Reserve Bank of India (RBI) removed cash withdrawal limits at ATMs from 1 February and on current accounts and overdraft accounts with immediate effect.

After the demonetisation move on 8 November, the government had put in place cash withdrawal limits in wake of a cash crunch in the country. RBI had progressively increased the cash withdrawal limits at ATMs from Rs2,000 on 8 November to Rs10,000 per card, per day as of 16 January.

“However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016,” RBI said in a notification released on its website on Monday.

“The limits on saving bank accounts will continue for the present and are under consideration for withdrawal in the near future,” it added.

For current account holders the withdrawal limit earlier stood at Rs1 lakh per week and for saving account holders Rs24,000.

“…banks are 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,” the regulator said in its notification.

Banks also have been asked to fix their own cash withdrawal limits, as has been the case before the demonetisation exercise. RBI has also removed all limits on cash withdrawals from current accounts/ cash credit accounts/ overdraft accounts with immediate effect.

The central bank also promised to review the weekly limit in the near future depending on the pace of remonetisation. “On a review of the pace of remonetisation, it has been decided to partially restore status quo ante,” said RBI.

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