New Delhi: Major ATMs in NCR running dry these days because of cash crunch but the Reserve Bank of India today said it was removing all limits on cash withdrawals from current accounts across bank counters and from ATMs starting Wednesday, February 1.
Restrictions on savings bank accounts would continue for now and are "under consideration for withdrawal in the near future," the central bank said.
"Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect," the Reserve Bank said in a circular on Monday.
The circular added that the banks may, however, "at their discretion" impose their own operating limits as was the case before November 8.
Earlier, Union Finance Minister Arun Jaitley has said the central bank will remove restrictions on cash withdrawals only after assessing market situation and the government will not interfere in the process.
The ban on 500 and 1000 rupee notes, which came within a few hours of Prime Minister Narendra Modi's surprise announcement on November 8, has been followed by a huge cash crunch as nearly 86 per cent of currency suddenly went out of circulation. With the available notes being rationed, over the next few weeks, block-long queues were seen at banks and ATMs.
As the situation eased with the new notes of Rs. 500 and Rs. 2000 coming into circulation, the RBI is relaxing the cash withdrawal rules in phrases.
In its current circular, the Reserve bank said the banks needed to push for non-cash transactions. "The 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 circular read.
