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RBI Lifts Restrictions on Cash Withdrawals From Savings Bank Accounts, ATMs

A file image of a man leaving after getting money from an ATM (PTI Photo)

New Delhi: The Reserve Bank of India (RBI) has lifted the restrictions on cash withdrawals from bank accounts and ATMs, in a sign that the pace of remonetisation is picking up.

In a statement on its website, the central bank said that restrictions on withdrawal of cash from current accounts, cash credit and overdraft accounts have been lifted with immediate effect.

Further, limits on cash withdrawals from ATMs will be withdrawn from February 1, 2017.

However, the limits on savings bank accounts will continue for the present, until further review by the RBI.

The latest directive from the RBI is an indication of its confidence in the pace of supplying new currency to banks and ATMs across the country.

On November 8, the RBI imposed limits on the withdrawal of cash from bank accounts and ATMs following the decision to demonetise, as it feared it could lead to mass withdrawals of cash.

The last directive from the RBI on cash withdrawals was on January 16 where the limit on withdrawals from ATMs was raised from Rs 4,500 to Rs 10,000 per day per card and the withdrawal from current accounts was raised from Rs 50,000 per week to Rs 1,00,000 per week. It was applicable to overdraft and cash credit accounts also.

Source: News18