Withdrawal limit to be eased once 80% of notes rechannelised
New Delhi: The government is considering easing restrictions on cash withdrawals, starting with cooperative banks, once 80 per cent of the new currency is introduced into the system, a top official said on Thursday.
With 50 per cent or Rs 7.5 lakh crore worth of remonetisation complete, queues at banks have reduced substantially and are visibly longer only in poll bound states like Uttar Pradesh and Punjab, he said.
The official added that the restrictions on cash withdrawals will be first eased in case of cooperative banks and then for all the scheduled commercial banks.
Along with demonetisation, restrictions were placed on bank counter as well as ATM withdrawals. The withdrawal limit from banks is Rs 24,000 a week, including a maximum of Rs 2,500 from ATMs per day.
“We could not print all the currencies in one go because we wanted the money to be channelised in the system first,” he said.
“When 80 per cent of new currency is pumped in into the system, withdrawal restrictions will be eased,” he said.
