Cash withdrawal from ATM current account removed, savings accounts to follow
New Delhi, RBI, January 30: In a notification dated on 30th January by the Reserve Bank of India, RBI removed the cash withdrawal limits from the ATMs effective from Wednesday i.e February 1, however this is valid only for the current accounts holders.
Below is the short notification from the RBI
Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status quo ante
- On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:
- Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.
- The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.
- Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.
- Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.
The demonetisation and bankwithdrawal limit started soon after the Nov 8, last year when the government announced the demonetisaton of Rs 500 and Rs 1,000 Notes. Later the, RBI issued new currency notes worth of Rs 500 and Rs 2,000.
In the coming days the government would be removing the entire restriction form the withdrawal limit.