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DHENKANAL POSTAL DIVISION AT A GLANCE

Sunday, January 1, 2017

RBI increases cash withdrawal limit from ATMs to Rs 4,500 from Jan 1

By: Express Web Desk | New Delhi | December 31, 2016

RBI issued a statement on Friday citing that from January 1 2017, the daily withdrawal limit of ATMs would be increased from the current Rs 2, 500 rupees to Rs 4, 500. The bank also said that there would be no change in weekly withdrawal limits.

The statement read: On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card. There is no change in weekly withdrawal limits.Such disbursals should predominantly be in the denomination of ₹ 500.



Earlier this week, banks had reportedly asked the government to extend the curbs on cash withdrawals beyond December 30 until an adequate quantity of new currency is injected, according to bankers and officials in the Finance Ministry. Bankers reportedly told the Finance Ministry that lifting the curbs immediately after this week could disrupt branch operations as a large number of people could turn up to withdraw cash.

“These restrictions should go only when there is a sufficient amount of bank notes in the system. Until and unless that happens, they (the government) cannot take away the restrictions. The moment they do this, everybody will want to go and draw out a lot. That will become a problem,” a senior executive of the State Bank of India said to The Indian Express.

“The relaxations have to be commensurate with the currency availability in banks. It will only be logical for the government to not relax the restrictions as of now since there is not enough cash. If the limits are relaxed, people will ask for more cash and there is limited cash. This will only turn banks into villains,” a private banker had said.

Friday was the last day to deposit the invalid currency notes in banks. However, people still have time to exchange the currency notes at designated RBI counters till March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30.
Source : http://indianexpress.com

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