SOON, DAILY ATM WITHDRAWALS LIMIT MAY BE UPPED TO 24K

NEW DELHI: The government might allow people to withdraw their weeklylimitof Rs24,000inasingle ATMtransaction,multiplesources toldHT,asthecashcrunchshowed signs of easing nearly three months after demonetisation.

The single-transaction rule could be implemented within a fortnight. However, the weekly limit of Rs 24,000 is likely to be keptunchangedtillFebruary-end, highly-placed sources said.

The government recalled 500 and 1000-rupee banknotes on November 8 in a shock announcement that sucked out 86% of the currency in circulation, sparking a severe cash crunch and panic among billions of Indians.

Atpresent,customerscanwithdraw Rs 24,000 in a week though the single-day ATM limit is set at Rs 10,000. Banks, however, allow the entire amount to be withdrawn in a single transaction.

Sources said that with the situation easing, customers are now withdrawing around Rs 3,500 in a single transaction, which has left theATMswithextracash.Sources said the RBI, which is monitoring thepatternoncashwithdrawaland supply, will take a decision soon.

“The situation has become almostnormal,theaveragefootfall atanATMhascomedownandthe demand for cash is also normalising,”RiturajSinha,president,Cash Logistics Association, told HT.

Cash injection into ATMs has also further increased in the last five days, he said. On an average, about Rs 12,000 crore is being provided for filling up the country’s 2.2 lakh ATMs compared to about Rs13,000crorebeforeNovember 8.