Published: Thu, March 16, 2017
Economy | By Melissa Porter

No restrictions on cash withdrawal from banks and ATMs starting today

No restrictions on cash withdrawal from banks and ATMs starting today

The RBI had removed cash withdrawal limits from ATMs on February 1. Even prior to that, the cash withdrawal limit was Rs 24,000 per week for savings accounts. Initially, cash withdrawal limit was hiked to Rs 50,000 on February 20.

As per the Reserve Bank of India (RBI) decision taken in February, all limits for withdrawal of money from ATMs ended on Monday, March 13. The banking regulator had been reviewing the withdrawal limit in a phased manner. In its preliminary assessment of the macro-economic impact of demonetisation, the RBI said the note ban had impacted various sectors in varying degrees, but the adverse impact was transient and felt mainly in November and December 2016.

The limits were imposed as an effect of demonetization of old 500 and 1000 currency notes. Banks like ICICI, HDFC, Axis and SBI have imposed charges for cash transactions beyond a limit of four times. "Effective February 22, 2017, the limits from cash withdrawal from savings bank accounts will be enhanced to Rs 50,000 per week from the current limit of Rs 24,000 per week (and) effective March 13, 2017, there will be no limits prescribed by RBI on cash withdrawal from savings bank accounts".

Finance Minister Arun Jaitley announced that new currency worth more than Rs 12 lakh crore was in circulation.

"We have nearly completed the demonetisation process and it has been the smoothest possible replacement of currency anywhere in the world", said Jaitley on 25 February. Considering the Comparison, banned Rs. 500 and Rs. 2000 notes value Rs 15.44 lakh crore as of 8 November, a day before the banknotes ceased to be legal tender.

"So, this is the quantum of currency which they, as on February 24, made available in the market". Arun Jaitley answered a question in parliament and said that it was hard to provide an exact figure of defunct Rs 500 and Rs 1,000 notes deposited so far.

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