The Reserve Bank of India (RBI) on Friday raised the daily ATM cash withdrawal limit from the existing Rs 2500 to Rs 4500 for an individual from January 1st 2017. The central bank, however, did not change the weekly of withdrawal limit Rs 24000 from Banks.
The move came on the last day of depositing scrapped Rs 500 and Rs 1000 notes in banks, through people still have time t exchange the bills at designated RBI counters till March 31.
The Reserve Bank of India has also asked banks to ensure that disbursal’s on ATM’s should predominantly be in the denomination of Rs 500.
The government and Reserve Bank of India have maintained that they have stocked enough currency to ensure smooth supply even beyond December. According to numbers released on December 21, the regulator has supplied currency amounting to Rs 5.92 lakh crore till December 19 as against the Rs 15.4 lakh crore pulled out of the system on November 8.
In its direction to banks on ATM withdrawals, the RBI said: “Such disbursal’s should predominantly be in the denomination of Rs 500.”
Earlier in the day, finance minister Arun Jaitley said the RBI has enough currency and the cash supply situation has improved significantly.
Prime Minister Narendra Modi surprise announcement to scrap Rs 500 and Rs 1000 notes on November 8 has sparked chaos and confusion across the country, with millions of consumers queued outside banks and ATM’s to change a limited number of old notes for new ones or withdraw cash. The government said the move was aimed at rooting out black money and corruption.
Banks started accepting deposits in scrapped notes from November 10. However, very few ATM’s opened on November 11, as most of the machines had to be re-calibrated for dispensing the new Rs 2000 and Rs Rs 500 notes.
Although the overall situation at banks has improved, ATM’s still have to do some catching up. Many cash vending machines are still out of cash.
Reserve Bank of India had also said it had issued a total of 22.6 billion notes of various denominations during the demonetisation process until December 19. Of this 20.4 billion were Rs 10, 20, 50,and 100 notes while 2.2 billion were Rs 500 and 2000 notes.