New Delhi: The Reserve Bank of India on Monday raised the cash withdrawal limit from ATMs to Rs 10,000 per day. Earlier, the cap was Rs 4,500.
The withdrawals from ATMs, however, will be operative within the existing overall weekly limit of Rs 24,000, a Reserve Bank of India communique said.
The central bank also raised the Current Account Withdrawal limit to Rs 1,00,000 from Rs 50,000.
These measures are expected to ease the pressure on the common man who has been reeling under severe cash crunch ever since Prime Minister Narendra Modi declared the old 500 and 1000-rupee notes as illegal tender.
According to Bank of Maharashtra Executive Director R K Gupta, the relaxation by RBI is a clear indication that cash situation is easing.
About 75 per cent of ATMs of the bank are functioning round the clock, he said, adding, all banks are pushing more than 40 per cent of their cash into rural and semi-urban area to ensure adequate cash availability.
Cash position is getting better day by day and rush at ATMs has come down significantly, said another senior official of a public sector bank.
However, the limit is something that RBI takes a call and complete removal of the limit would be done after due diligence and feedback from all the banks, the official added.
"ATM cash supply situation is near normal. About Rs 8,000 crore on daily basis is being fed across the country. We are gearing up for higher loading frequency and meet the requirement," said Rituraj Sinha, the president Cash Logistics Association.
On January 1, 2017, RBI had increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500.
The limits on cash withdrawals were placed by RBI following demonetisation of old Rs 500 and Rs 1,000 notes on November 9, 2016.
The 50-day demonetisation period ended on December 30. However, NRIs and Indians who were abroad during the demonetisation period have been given additional time to deposit their old currency notes.
(With inputs from PTI)
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