Withdrawal Limit from ATMs Increased to Rs 4,500 Effective Jan 1

- Alive correspondent   31-12-2016

          


In a late-night development, cash withdrawal limit from ATMs was increased from Rs 2,500 to Rs 4,500 effective January 1. However, there is no change in the weekly withdrawal limits, which stays at Rs 24,000.

RBI said in a statement, "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 2500/- to Rs 4500/- per day per card. There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of Rs 500".

The government had so far resisted hiking the withdrawal limit as majority of the ATMs were yet to be recalibrated for dispensing new Rs 500 and Rs 2,000 notes.

After demonetising 500 and 1,000 rupee notes — which made up for 86 per cent of the total currency in circulation — the government had on November 8 set a cash withdrawal limit of Rs 2,000 per day from ATMs. This limit was to be raised to Rs 4,000 per day per card from November 19, 2016, but was revised to Rs 2,500 on November 15.

Prime Minister Narendra Modi in a surprise announcement on November 8 declared the Rs 500 and 1,000 notes invalid.