NEW DELHI: The number of trips people used to make to the ATM to withdraw cash for their daily needs is set to come down with the Reserve Bank of India (RBI) easing the restriction on daily cash withdrawals with immediate effect. Now, one can withdraw up to Rs 10,000 per day per card against Rs 4,500 earlier.
However, the maximum amount that can be taken out from teller machines in a week remains at Rs 24,000 per card.
The withdrawal limit for current accounts, too, has been doubled to Rs 1 lakh from Rs 50,000 earlier. The limits are applicable to overdraft and cash credit accounts as well.
The central bank’s latest decision to tweak the ATM cash withdrawal norms by enhancing daily cash withdrawal limits, while still keeping the weekly withdrawal limits intact, signals the cash situation may be improving , say experts.
“On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect...,” RBI said in a notification.
According to experts, the weekly withdrawal limits are also likely to be eased gradually. The banking regulator had initially put limits on cash withdrawals following the demonetisation of old Rs 500 and Rs 1,000 notes on November 9, 2016.
The 50-day window to exchange old high-denomination notes ended on December 30, 2016. However, non-resident Indians, who were abroad during the demonetisation drive, have been given additional time to deposit their old currency notes.
According to banking sources, most ATMs have started functioning normally and banks are pushing more than 40 per cent of their cash into rural and semi-urban area to ensure adequate cash availability. Also, the cash position with banks is also getting better and the rush at ATMs has come down.
Cash withdrawal limit is something the banking regulator takes a call on and complete removal of the limit would be done after due diligence and feedback from all the banks, according to officials.
According to Rituraj Sinha, the president, Cash Logistics Association, the ATM cash supply situation is near normal and about Rs 8,000 crore is being fed across the country on a daily basis.