Now you can withdraw Rs 4,500 per day from ATMs as RBI increases cash withdrawal limit

Mumbai: Now one can withdraw more from cash from banks ATMs. The Reserve Bank of India, via a circular on Friday, had announced increase in cash withdrawal limit per day per card from ATMs from January 1, 2017 .

“On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card. There is no change in weekly withdrawal limits.Such disbursals should predominantly be in the denomination of ₹ 500”, said the RBI circular.

RBI further added that there will be no change in weekly withdrawal limits, and disbursals from ATMs should predominantly be in the denomination of ₹ 500.

Earlier on Friday, 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(s).

While speaking to the news agency ANI on Sunday, Finance Minister said that increase in banks' deposits is seen as an increase in the lending ability of the banks. "Remonetisation has progressed extremely well and I am sure in the coming days it will be completed", added FM.

Daily limit for withdrawing cash from ATMs was last increased to Rs 2,500 from existing Rs 2,000 by Ministry of Finance on November 13.

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.

Prime Minister Narendra Modi had on November 8 announced junking of old Rs 500 and Rs 1,000 notes, and replaced by new Rs 2,000 and Rs 500 notes.

Along with demonetisation, restrictions were placed on bank counter as well as ATM withdrawals.

The withdrawal limit from banks presently is Rs 24,000 a week, including a maximum of Rs 2,500 from ATMs per day.​