As the limit on withdrawals from ATMs has increased from Rs4,500 to Rs10,000 per day per card, several people especially working professionals flocked to ATMs to withdraw Rs10,000 on Tuesday.
Vaibhav Shukhla, 41, an employee at a software company in Noida and resident of Mayur Vihar said, “I was not able to go to banks due to work commitment but with the cap on maximum withdrawal being raised, I could withdraw Rs10,000. It will help me pay several outstanding bills as one could not do much with Rs4,500.”
Bank officials said that the decision will help them focus more on other banking works like opening accounts, sanctioning loans, opening fixed deposits, public provident fund accounts as several people who came to banks for withdrawing a big sum will now be diverted to ATMs.
A senior official of State Bank of India in central Delhi said, “The queue at banks was already less but with the withdrawal limit being raised it will lessen the hoarding tendency among people as it will instill confidence among them that there is enough money in the system.”
Secondly, it will now be easier for people to pay their rent and other bills,” he added.
The decision however was not backed by speedy replenishment of cash at ATMs as higher withdrawal meant that several ATMs ran out of cash a faster rate on Tuesday.
Vinod Kumar, who was withdrawing money from an ATM in central Delhi said, “I came all the way from east Delhi as most ATMs there are not functioning. Increasing the withdrawal limit is not enough, if we have to keep searching from money from ATMs.”
Sources in bank association said that the focus is presently in replenishing cash at ATMs which are at busier places like Connaught Place, metro stations and railway stations.
As a reason, one can see that several ATMs in residential areas remain dry for most parts of day.
The Reserve Bank of India had placed limits on cash withdrawals following demonetisation of old Rs500 and Rs1,000 notes on November 9, 2016.