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No limits on cash withdrawal from banks and ATMs

Four months after Prime Minister Narendra Modi announced demonetisation of old Rs 500 and Rs 1,000 notes, causing currency shortage, the limits on cash withdrawal are off.

business Updated: Mar 13, 2017 21:53 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
demonetisation,cash withdrawal limit,ATM
People were seen standing in long queues outside ATMs and banks as currency shortage left little money with the common man for expenses. (HT FILE PHOTO)

The limits on withdrawing cash from banks and ATMs end on Monday, four months after they were imposed following the demonetisation of old Rs 500 and Rs 1,000 notes, which created a currency shortage across the country.

Ever since the government’s surprise move to ban the high-value notes on November 8, the Reserve Bank of India (RBI) has been gradually relaxing the limits.

Last month, the central bank had issued a notification saying that the withdrawal limit of cash from savings bank accounts will be relaxed to Rs 50,000 from February 20 and there would be no restrictions from March 13.

However, India’s leading private banks—HDFC, ICICI, Axis—have decided to charge Rs 150 for cash deposits and withdrawals after four free transactions in a month.

These charges were stopped briefly after the government scrapped the high-value notes in November.

HDFC, ICICI and Axis banks will calculate the fee – aimed at reducing cash dealings – at the rate of Rs 5 for every Rs 1,000 transacted or Rs 150, whichever is lower.

HDFC and ICICI sources said the fees will be applicable to transactions outside of home branches. Both banks define home branch differently; HDFC defines it as the branch where an account was opened while ICICI defines it as any branch within the city of the account.

On the fake new currency notes, Gandhi had said the recent ones that have come to notice are photocopies of currency which can be easily identified by the common man.

The new notes have enhanced security and design features, and are not easy to copy, he said.

First Published: Mar 13, 2017 12:39 IST