With the cash crunch situation easing, Reserve Bank of India may do away with the weekly withdrawal limits from banks as well as ATMs by the end of next month, bankers said.
The RBI had recently raised the ATM withdrawal limit to Rs. 10,000 a day but maintained the weekly cap at Rs. 24,000 for savings account and Rs. 1 lakh for current account holders.
“I think the restrictions on withdrawal by RBI should be completely lifted by February-end or by first half of March as the cash situation is easing gradually,” Bank of Maharashtra executive director R.K.Gupta told PTI. It is entirely RBI’s decision and it would decide after making holistic assessment of the situation, he said.
According to SBI’s research report Ecowrap, “By the end of February, 78-88% of the currency could be back in the system under the best case scenario in terms of an optimal currency distribution (more small denomination notes),” the report said, adding that “it seems within next two months things would be pretty close to normal.”
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