RBI curbs on cash withdrawal from banks and ATMs go

  • RBI curbs on cash withdrawal from banks and ATMs go

RBI curbs on cash withdrawal from banks and ATMs go

As all limits on cash withdrawals from savings bank accounts post-demonetisation came to an end on Tuesday, cash transactions continue to gain traction with return of normalcy in the economy.

The curbs on withdrawal of currency notes from banks were imposed from 10 November to check currency flow from the banks subsequent to the 8 November demonetisation of Rs500 and Rs1,000 notes.

The RBI move has come after nearly four months since the Prime Minister first announced the withdrawal of high value notes.

The cash withdrawal limit at automated teller machines (ATMs) was earlier increased to Rs10,000 per day per saving bank account on 16 January.

The withdrawal limit was relaxed in two stages, while the weekly limit for savings accounts was raised from Rs 24,000 to Rs 50,000, with effect from February 20, all limits on ATM withdrawals were slated to cease from March 13.

The process of demonetising Rs 500 and Rs 1,000 notes and thus, India's transition to newer denominations, is now complete, with all limits on cash withdrawals from savings bank accounts having been lifted today.

The RBI had said that it was awaiting the impact of demonetization on the country, which later turned out to be positive and nowhere near the dystopian picture that was drawn by some economists and the Opposition.

On March 11, Finance minister Arun Jaitley had said new currency notes worth over Rs 12 lakh crore were now in circulation in the country.

He said that the last data the Reserve Bank of India has released was on 24 February and till then currency in circulation was about Rs 11,64,100 crore. Banks like ICICI, HDFC, Axis and SBI have imposed charges for cash transactions beyond a limit of four times. A fortnight has nearly elapsed since then.

In the interim, Finance Minister and the RBI continued silence on the exact value or number of banned notes returned.