Government Raises Withdrawal Limits To Ease Cash Crunch
ATM withdrawal limits have been raised to Rs 2,500 from Rs 2,000 in recaliberated ATMs.
The Narendra Modi government relaxed withdrawal limits for individuals and businesses, and extended the window for using old Rs 500 and Rs 1,000 notes, as part of its efforts to provide relief to citizens impacted by last week’s demonetisation initiative.
There is no need for panic as there’s enough cash available in the system, Economic Affairs Secretary Shaktikanta Das said in a press conference. The cash crunch will ease in the coming days, Das added.
Here are some of the key announcements made by the government.
- Old and now defunct Rs 500 and Rs 1,000 notes can be used for public utility and fuel payments till November 24.
- Withdrawal limit for individuals has been hiked to Rs 24,000 per week from Rs 10,000 per day, thereby allowing people to take out Rs 24,000 at once.
- ATM withdrawal limit has been hiked to Rs 2,500 from Rs 2,000. But the higher limit will apply only if the machines have been recalibrated. (A task force has been set up to expedite the process of recalibrating ATMs.)
- Withdrawal limit for current accounts of businesses, which have been operational for the last 3 months, has been increased to Rs 50,000 per week.
The focus of the government is to activate all the channels through which cash is given to the public, Das said.
Banking correspondents have been allowed to replenish cash multiple times a day compared to just once earlier. Their daily withdrawal limit has been hiked to Rs 50,000. The supply of cash to 1.3 lakh post offices across the country will also be enhanced.
Das added that a large number of micro ATMs will be deployed in the country, to allow people to get cash by using their debit cards.
The National Payment Corporation of India has been asked to waive off transaction charges, while banks have been advised to not charge on debit and credit card transactions.
The Economic Affairs Secretary added that banks have been advised to maintain separate queues for senior citizens and physically handicapped customers. There will also be separate queues for exchange of cash and transactions against bank accounts.
Prime Minister Modi had held a meeting with senior ministers on Sunday night to review demonetisation and its impact.
