DAILY ATM LIMIT MAY BE RAISED AS WITHDRAWAL RUSH ABATES

NEW DELHI: The government might allow people to withdraw their weekly limit of `24,000 in a single ATM transaction, multiple sources told HT, as a severe cash crunch showed signs of easing nearly three months after the demonetisation of high-value banknotes.

The single-transaction rule could be implemented soon. However, the weekly limit of `24,000 is likely to be kept unchanged till February-end, highly-placed sources said.

The government recalled 500 and 1,000-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.

At present, customers can withdraw `24,000 in a week though the single-day ATM limit is set at `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 Banks, however, allow the entire amount to be withdrawn in a single transaction.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 `3,500 in a single transaction, which has left the ATMs with extra cash.

Sources said the RBI, which is monitoring the pattern on cash withdrawal and supply, will take a decision on this issue soon.

“The situation has become almost normal, the average footfall at an ATM has come down and the demand for cash is also normalising,” Rituraj Sinha, president, Cash Logistics Association, told Hindustan Times.

Cash injection into ATMs has also further increased in the last five days, he said.