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Demonetisation: Cash withdrawal rules eased in India

IANS/New Delhi
Filed on January 31, 2017 | Last updated on January 31, 2017 at 02.32 pm
Demonetisation: Cash withdrawal rules eased in India

(AFP)

"On a review of the pace of re-monetisation, it has been decided to partially restore status quo ante," the RBI said.


The RBI on Monday ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts with immediate effect.

A Reserve Bank of India notification said limits on ATM withdrawals will also go from Wednesday.But the curbs on Savings Bank accounts across the counter will remain.

"On a review of the pace of re-monetisation, it has been decided to partially restore status quo ante," the RBI said.

"Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash cred-it accounts/ Overdraft accounts stand withdrawn with immediate effect."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 added.

The limits were placed following the November 8 demonetisation of Rs1,000 and Rs500 notes.

The upper limit at ATMs was just Rs2,500 initially, and later it was raised to Rs4,500.

Earlier this month, the RBI had hiked the daily ATM withdrawal limit from Rs4,500 to Rs10,000 and doubled the weekly Current Account withdrawal limit to Rs100,000.

The upper limit for weekly withdrawal from bank accounts had been raised to Rs24,000 from Rs20,000 in November.

While lifting of ATM withdrawal limits from February 1 will represent coming full circle for these machines in respect of demonetisation, it is to be seen whether the amount of cash supplied by RBI will be able to satisfy the demand of citizens in future. Following the RBI turning down its earlier request regarding candidates, the EC on Saturday again wrote to the central bank asking it to reconsider its decision.

Given the cap of Rs24,000 on withdrawal per week post-demon-etisation, the candidates can with-draw only Rs96,000 during the three to four week time before polls, against the expenditure limit of Rs2.8 million for Punjab, Uttarakhand and Uttar Pradesh, and R2 million for Manipur and Goa, the EC said.

ATM limits end tomorrow

> RBI ended all curbs on withdrawals from Current Ac-counts, Cash Credit Accounts and Overdraft Accounts with immediate effect.

> Limits on ATM withdrawals will also end from Wednesday.

> The limits on Savings Bank accounts will however, continue but are under consideration for withdrawal.





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