Withdrawal limit on current, cash credit and overdraft accounts lifted with immediate effect
Facing criticism from the Election Commission for not allowing contenders contesting the upcoming Assembly polls to withdraw cash up to their permitted limit, the Reserve Bank of India (RBI) on Monday removed cash withdrawal restrictions on current, cash credit and overdraft accounts with immediate effect.
ATM cash withdrawal restrictions will also be eased from Wednesday, RBI stated. A savings account holder may now withdraw up to Rs 24,000 at one go from ATMs. Previously, the limit on such accounts was Rs 10,000 per day, with a weekly cap of Rs 24,000.
The overall withdrawal limit on savings accounts will, though, continue. The cap for savings account holders is Rs 24,000 per week. “The cash withdrawal limits on saving bank accounts will continue for the present and are under consideration for withdrawal in the near future,” RBI added.
RBI also stated banks may, at their choice, have their own operating limits as was the case before November 8, when note ban was imposed.
The reason behind the move was the “pace of remonetisation,” or the pace at which new notes have replaced the scrapped high-value notes, stated the central bank.
Following demonetization, RBI had put a cash withdrawal limit of Rs 2,000 per day from ATMs and Rs 10,000 per week. Customers holding a current or overdraft or cash credit accounts were allowed to withdraw up to Rs 50,000 in a week.
Just before November-end, RBI increased the caps on savings bank withdrawals to Rs 24,000 a week.
In January, it was advance relaxed to Rs 4,500 per day from ATMs, but the weekly withdrawal limits remained the same. On January 16, RBI improved ATM withdrawals further to Rs 10,000 daily, while keeping the weekly limits at Rs 24,000.
The central bank had also improved the limit on withdrawal from current accounts, overdraft and cash credit accounts to Rs 1,00,000 per week.