All Restrictions to be soon withdrawn,says Shaktikanta Das

The exercise of remonetisation that began after scrapping of the old Rs 500 and 1,000 notes is “close to completion”said Economic Affairs Secretary Shaktikanta Das. It has been almost 90 days after the Prime Minister Narendra Modi announced demonetization on November 8.

There would practically be no restrictions. Since, only a few withdraw 1 lakh rupees in a month (24,000 a week), this restriction is yet to be removed.Thus, Das called this process ‘near-complete’.

He said in an interview,”All restrictions have been removed except on savings bank account of Rs 24,000 per week. This (removal of withdrawal limit) is also a matter of time.”

He ensured that since the currency supply and its management are RBI’s responsibility and it would soon lift this limitation.

The emphasis will be on providing lower denomination notes. There has been a recent news of new 100 rupees notes to be printed, while the old ones to still remain valid and in circulation, which is a step in this process.

Timeline of cash withdrawal restrictions and their upliftments:

  • Right after demonetisation: RBI had put withdrawal limit Rs 2,000 per day from ATMs. Rs 10,000 per week. Customers holding current or overdraft or cash credit accounts were allowed to withdraw up to Rs 50,000 in a week.
  • Uptil the end of November: Limit relaxed to Rs. 24,000 per week. Daily limit remains intact.
  • Early January: The cap further lifted to Rs 4,500 per day from ATMs, but weekly withdrawal limits retained .
  • On January 16: RBI enhanced the ATM withdrawals further to Rs 10,000 daily. While  the weekly limits kept at Rs 24,000.
 The government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of currency shortage following the cash ban. Since now, the remonetisation has gained pace, further limits are soon to be lifted.
The central bank also enhanced the limit on withdrawal from current accounts, overdraft and cash credit accounts to Rs 1,00,000 per week.