RBI increases cash withdrawal limit from today

But, that time it had kept the overall limit at Rs 24,000 in a week for savings bank account. On January 16, the limit was increased to Rs 10,000 per day which was followed by another round of easing on January 31 when the limit was increased to Rs 24,000.

Earlier, the RBI said it would remove the cap on withdrawals from saving accounts in two phases.

In the wake of withdrawal of Specified Bank Notes (SBNs) since November 09, 2016 Reserve Bank had placed certain limits on cash withdrawals from Savings / Current / Cash credit /Overdraft accounts and withdrawals through ATMs. Reserve Bank of India announced that it will be in effect from Monday 20 February 2017. "There will be no restrictions on cash withdrawals from March 13", it added.

Navroze Dastur, MD of India's largest ATM company NCR India, said, "Cash shortage is one problem". And in January 2017 limit hiked to 10000.

Meanwhile, the Lok Sabha has passed a bill that makes holding of more than 10 old notes of Rs 500 and Rs 1000 an offence punishable with a minimum fine of Rs 10,000.

The decision to increase the withdrawal limit was taken after the RBI announced its sixth bi-monthly monetary policy review.

  • Zachary Reyes