Demonetisation: RBI enhances ATM withdrawal limit to Rs 4,500 per day from January 1

The Reserve Bank of India has also asked banks to ensure that disbursals of cash should predominantly be in the denomination of Rs 500. Image Source: Reuters

The Reserve Bank of India (RBI) on Friday has increased the daily cash withdrawal limit to Rs 4,500 per day from the earlier cap of Rs 2,500 per day starting from January 1 next year.

However, the weekly cash withdrawal limit of Rs 24,000 per week remains unchanged.

"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 Rs 2,500 to Rs 4,500 per day per card," the central bank said in a notification issued late on Friday evening.

ALSO READ: India abolishes larger banknotes in fight against graft, 'black money'

"There is no change in weekly withdrawal limits," cited RBI in a statement.

The Reserve Bank has also asked banks to ensure that disbursals of cash should predominantly be in the denomination of Rs 500.

In a surprise move to curb black money, corruption and terrorism, Prime Minister Narendra Modi on November 8 this year announced scrapping of old currency notes of Rs 500 and Rs 1,000 as legal tender from circulation resulting in cash crunch across the country.

The goverment had given 50-day window period for holders of old currency notes to deposit or exchange their old notes to banks and RBI offices which ended on December 30, Friday. It has later, however, withdrawn the notes exchange facility before the said deadlines.

ALSO READ: RBI refuses to give reasons behind demonetisation

TAGS: