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RBI increases ATM withdrawal limit from Rs 2500 to Rs 4500

50 days since demonetisation came into effect got over on Friday, December 30th, and in order to alleviate the suffering of people a little bit, Modi government has decided to increase the ATM withdrawal limit.

RBI announced that the ATM withdrawal limit has been increased from Rs 2,500 to Rs 4,500 and this would come into effect from the 1st of January.

Everyone was facing shortage of cash since the time PM Narendra Modi announced demonetization; Rs 2500 was not sufficient for many people, but now with the increase in limit, there is hope that things will improve.

Note however that even though the ATM withdrawal limit has been changed, there are no changes in the weekly withdrawal limit i.e. Rs 24,000.

RBI issued a statement that read:

?On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing Rs 2500/- to Rs 4500/- per day per card. There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of Rs 500.?

Arun Jaitley, the Finance Minister, said that RBI has got enough currency printed and soon, the situation would be under control as supply will improve.

RBI has also said that now, the disbursal to ATMs shall be in the denomination of Rs 500. But many are still asking when PM Modi had promised that on 30th of December, the ill-effect of demonetization would end, then why such restrictions even after that?

Point to ponder indeed.