In respite for the thousands of people facing the cash crunch all over the country, the RBI on Friday relaxed the daily ATM withdrawal limit to Rs 4,500 from the earlier cap of Rs 2,500, with this facility, to be effective from January 1, coming as a New Year gift to citizens.
"On a review of the position, the daily limit of withdrawal from ATMs has been increased with effect from January 1, 2017, from the existing Rs 2,500 to Rs 4,500 per day per card," the Reserve Bank of India said in a notification issued late on Friday.
The RBI further said "there is no change in weekly withdrawal limits", which remains at Rs 24,000.
The central bank also asked banks to ensure that disbursals on ATMs should predominantly be in the denomination of Rs 500.
As per data released by the RBI on December 21, it has supplied currency amounting to Rs 5.92 lakh crore till December 19, as against the Rs 15.4 lakh crore pulled out of the system through the demonetisation of high-value currency announced on November 8.
Meanwhile, as the deadline to deposit old Rs 500 and Rs 1,000 notes in banks ended Friday evening, Union Finance Minister Arun Jaitley said that normalcy has been restored to a large extent and from tomorrow onwards, the entire currency in circulation will be legitimate.
"With effect from tomorrow the entire currency in circulation would be legitimate," Jaitley told reporters.
From Saturday, the legitimate currency that would continue to be legal tender is Rs 100 and other lower denomination notes along with the new Rs 500 and Rs 2,000 notes that the Reserve Bank of India (RBI) has printed, he added.
(With IANS inputs)
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