Cash Withdrawal Limits from ATMs increased to Rs. 4,500 from January 1, 2016

Cash Withdrawal Limits from ATMs increased to Rs. 4,500 from January 1, 2016

Posted on December 30, 2016

Update: As of February 1, 2017, the daily withdrawal limit for a Savings Account has been raised from Rs 10,000 to Rs 24,000 per week and for Current Account from Rs. 50,000 to Rs. 1 lakh. For more information, refer to the updated article.

The Reserve Bank of India increased the cash withdrawal limit from ATMs to Rs 4,500 per day from January 1, 2016. However, the weekly withdrawal limit remains the same at Rs. 24,000.  With the demonetization of Indian Rs. 500 & Rs. 1000 notes, the RBI had induced the daily limit of Rs. 2500 which has now been increased to Rs. 24,000 giving a sigh of relief to the citizen of India as the deadline to deposit demonetized notes in banks comes nearer.

After demonetising 500 and 1,000 rupee notes — which made up for 86 per cent of the total currency in circulation, the RBI had permitted White Label ATM Operators (WLAOs) to source cash from retail outlets. Most of the White Label ATMs are running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank. Government had earlier hinted that it was planning to relax restrictions on withdrawal limit once 80 percent of the new currency is re-channelised in bank deposits.

NRIs traveling to India, this holiday season, will be able to withdraw Rs. 4,500 per day as well from their NRE or NRO accounts.

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