RBI eases withdrawal limits for ATMs, current, overdraft A/cs

The Reserve Bank of India (RBI) on Monday eased cash withdrawal limits from ATMs from February 1. The central bank also removed limits from withdrawals from current, cash credit and overdraft accounts with immediate effect. The withdrawal limit on savings accounts will continue however. Currently, RBI has limit of Rs 24,000 a week on saving accounts. On the January 16, the RBI had raised cash withdrawal from ATMs to Rs 10,000 per day while maintaining the weekly limit. The central bank further said that it could look at withdrawing limits on savings account in future.The press release by the central bank also said that banks can now have their own ATM limits as was the case before cash-ban was implemented on November 8. The official notification further said that banks should encourage customers to switch to digitization. “Banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode,” it said.