RBI Removes Current Account And ATM Withdrawal Limits

RBI Removes Current Account And ATM Withdrawal Limits

Providing relief to citizens as well as business owners, the Reserve Bank of India (RBI), on Monday, decided to do away with cash withdrawal limits placed on current accounts, overdraft accounts and cash credit accounts with immediate effect. The central bank said the decision was taken post a review of the “pace of remonetisation”.

Withdrawal restrictions had been put in place after the government’s decision to withdraw Rs 500 and Rs 1000 notes from circulation on November 8. Since then, as new notes have replaced the scrapped currency, withdrawal restrictions have been slowly eased.

Until today, the limit for withdrawals from current accounts was set at Rs 1 lakh per week.
Limits On Savings Account Remain; ATMs Freed Up

The limits on withdrawals from savings accounts, however, have been kept in place for now.“The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future,” the RBI said in a statement.

Currently, savings account have a withdrawal limit of Rs 24,000 per week per account. This limit is likely to also kick in when customers try to withdraw cash from the ATMs starting Feb 1.

In the case of ATM withdrawals, the RBI has lifted the restriction of withdrawals only upto Rs 10,000 per day per card. This, however, is supplemented by a caveat that banks shall remain free to place their own limits depending upon the cash situation.

[Via: Bloomberg]