Remonetisation drive that began soon after scrapping of old Rs 500 and Rs 1,000 currency notes on November 8 last year is nearing completion as there are no limits on withdrawals anymore, except for one.
Economic affairs secretary Shaktikanta Das said, “Restrictions (on withdrawals) have been removed except Rs 24,000 per week from bank accounts and removal of this limit is only a matter of time.”
Supply of currency and management are the RBI’s responsibility and it will take a call on removal of weekly withdrawal limit of Rs 24,000, he added.
There is no restriction on high value withdrawals as only a few withdraw nearly Rs 1 lakh a month. The process is near-complete, is not complete as the last limit is still there. Now the focus is to provide lower denomination notes, he added.
Earlier, the RBI announced lifting of restrictions on daily cash withdrawal from current and overdraft account as well as ATMs.
“In less than 90 days, the entire process is almost complete. This speaks volumes about the way the remonetisation has been completed,” he said.
The government and the RBI had imposed limits on withdrawal from ATMs and bank branches in view of currency shortage following the notes ban.
These limits, however, were eased, with RBI pumping in new notes of Rs 500 and Rs 2,000.
On January 16, RBI enhanced the ATM withdrawals further to Rs 10,000 daily, while keeping the weekly limits at Rs 24,000. The RBI augmented the limit on withdrawal from current accounts, overdraft and cash credit accounts to Rs 1 lakh per week.