Cash withdrawal limit from ATMs increased to Rs 4,500 from Rs 2,500, effective Jan 1

Cash withdrawal limit from ATMs increased to Rs 4,500 from Rs 2,500, effective January 1

By Zee Media Bureau | Last Updated: Dec 31, 2016, 00:25 AM IST
Cash withdrawal limit from ATMs increased to Rs 4,500 from Rs 2,500, effective Jan 1

New Delhi:  In a relief to common man, the Reserve Bank tonight said cash withdrawal limit from ATMs will be increased to Rs 4,500 per day from the current Rs 2,500 from January 1.

On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card, informed RBI.

There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of ₹ 500.

Earlier in the day, the RBI had permitted White Label ATM Operators (WLAOs) to source cash from retail outlets.

Most of the White Label ATMs are running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank(s).

Today was the last day to deposit the invalid currency notes in banks. However, people still have time to exchange the currency notes at designated RBI counters till March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30.

Daily limit for withdrawing cash from ATMs was last increased to Rs 2,500 from existing Rs 2,000 by Ministry of Finance on November 13.

Government had earlier hinted that it was planning to relax restrictions on withdrawal limit once 80 percent of the new currency is re-channelised in bank deposits.

Prime Minister Narendra Modi had on November 8 announced junking of old Rs 500 and Rs 1,000 notes, and replaced by new Rs 2,000 and Rs 500 notes.

Along with demonetisation, restrictions were placed on bank counter as well as ATM withdrawals.

The withdrawal limit from banks presently is Rs 24,000 a week, including a maximum of Rs 2,500 from ATMs per day.​