RBI Raises ATM Withdrawal Limits From Rs 4,500 To Rs 10,000 Per Day

The Reserve Bank of India ( RBI) has raised the cash withdrawal limits from ATMs in the country. Consumers will now be able to withdraw Rs 10,000 per day from their savings bank accounts through ATMs as against the previous limit of Rs 4,500 per day. Though, there would be no change in the weekly withdrawal limits of Rs 24,000 per week. The new withdrawal limits will be applicable with immediate effect.

" The limit on withdrawals from ATMs has been enhanced from the current limit  of Rs.4,500 to Rs10,000  per day per card," said an RBI circular

"It will be operative within the existing Overall weekly  Limit," added the RBI circular.

For current account holders, the cash withdrawal limit has been enhanced from the existing limit of Rs 50,000 per week to Rs 1,00,000 per week and it extends to overdraft and cash credit accounts also, as per the RBI circular.

Earlier this month, finance minister Arun Jaitley had said the cash withdrawal limits would be removed  by the RBI "after assessing the market situation".

Prime Minister Narendra Modi had demonetised high denomination currency notes on November 8 last year, leading to cash crunch in the banking system. The demonetisation of Rs 500 and Rs 1,000 currency notes led to 86 per cent of the currency in-circulation losing legal tender. While the last date to deposit all the old notes in the banking system was December 30, the RBI has not been able to replace the all the old notes, till date.

RBI's printing presses have been working in three shifts to make up for the demand of new currency notes and experts have estimated the cash crunch to last for a few more months.There are only four currency note presses in the country.



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