Govt may allow Rs 24k from ATM in single withdrawal, weekly cap to remain | business-news | Hindustan Times
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Govt may allow Rs 24k from ATM in single withdrawal, weekly cap to remain

The government might allow people to withdraw their weekly limit of Rs 24,000 in a single ATM transaction, multiple sources told HT.

black money crackdown Updated: Jan 27, 2017 22:07 IST
Mahua Venkatesh
People queue up outside Punjab and Sind Bank ATM to withdraw cash near Connaught Place in New Delhi.
People queue up outside Punjab and Sind Bank ATM to withdraw cash near Connaught Place in New Delhi.(Virendra Singh Gosain/HT Photo)

The government might allow people to withdraw their weekly limit of Rs 24,000 in a single ATM transaction, multiple sources told HT, as a severe cash crunch showed signs of easing nearly three months after the demonetisation of high-value banknotes.

The single-transaction rule could be implemented within a fortnight. However, the weekly limit of Rs 24,000 is likely to be kept unchanged till February-end, highly-placed sources said.

The government recalled 500 and 1000-rupee banknotes on November 8 in a shock announcement that sucked out 86% of the currency in circulation, sparking a severe cash crunch and panic among billions of Indians.

At present, customers can withdraw Rs 24,000 in a week though the single-day ATM limit is set at Rs 10,000.

With the situation easing, customers are now withdrawing around Rs 3,500 in a single transaction, which has left the ATMs with extra cash.

Sources said the RBI, which is monitoring the pattern on cash withdrawal and supply, will take a decision on this issue soon.

“The situation has become almost normal, the average footfall at an ATM has come down and the demand for cash is also normalising,” Rituraj Sinha, president, Cash Logistics Association, told Hindustan Times.

Cash injection into ATMs has also further increased in the last five days, he said. On an average, about Rs 12,000 crore is being provided for filling up the country’s 2.2 lakh ATMs compared to about Rs 13,000 crore before November 8.