Demonetisation: Daily ATM withdrawal limit increased to Rs 4500 with effect from January 1

New Delhi: Following expiry of the deadline to deposit demonetised currency in banks, the RBI on Friday relaxed the daily ATM withdrawal limit to Rs 4,500 from the earlier cap of Rs 2,500, with this facility, to be effective from January 1, coming as a new year gift to citizens. Courtesy: RBI Website

• "On a review of the position, the daily limit of withdrawal from ATMs has been increased with effect from January 1, 2017, from the existing Rs 2,500 to Rs 4,500 per day per card," the Reserve Bank of India said in a notification issued late on Friday.
• The RBI further said "there is no change in weekly withdrawal limits", which remains at Rs 24,000.
• The central bank also asked banks to ensure that disbursals on ATMs should predominantly be in the denomination of Rs 500.
• As per data released by the RBI on December 21, it has supplied currency amounting to Rs 5.92 lakh crore till December 19, as against the Rs 15.4 lakh crore pulled out of the system through the demonetisation of high-value currency announced on November 8.

Prime Minister Narendra Modi is likely to address the nation on New Year’s Eve, i.e December 31, having the 50-day period for depositing of demonetized notes expired yesterday.  The Prime Minister is expected to speak between 5 pm and 6 pm today. In his address, the Prime Minister may speak about the roadmap post the demonetisation period especially on the steps likely to be taken to ease cash flow that has been a major problem ever since demonetisation took place. Prime Minister Narendra Modi These are the things that can be expected from PM Modi’s speech:

• The Prime Minister may thank the people of the country for being patient for a span of 50 days.
• With every passing day, the number of circulars from the government or the Reserve Bank kept on rising that led to confusion among bankers as well as the public. So, Prime Minister Modi may explain the reason behind the innumerable announcements made after demonetisation.
• PM may also mention the pros of the move to scrap high currency notes. This would include the amount of black money that has been seized after November 8 and the progress that the country has made towards being a cashless economy so far.
• In an attempt to soothe the suffering being faced by people since the announcement of demonetisation, PM Modi is also expected to increase the daily withdrawal limit of cash from ATMs and banks.
• It is also being speculated that the Prime Minister in his second address to the nation may announce measures to provide relief to the farmers and labourers.
• Also, more major announcements regarding ‘benaami’ properties can be made by PM Modi in his New Year’s speech.

The entire nation awaits the Prime Minister’s speech to the nation on the effects of notes ban. This would be PM Modi’s second address to the nation on demonetisation within 53 days. The address comes as the 50-day period sought by the Prime Minister to ease out cash crunch situation across the country got over yesterday Also, the 50-day deadline to deposit the old Rs 500/1,000 notes in banks came to an end today.

• People, however, still have time to exchange the currency notes at designated RBI counters till March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30.
• After March 31, holding demonetised notes would be illegal and could invite hefty fines and even jail, according to an ordinance passed by the Union Cabinet on Wednesday.
• The cash crunch and queues before ATMs are likely to continue for some more time as currency printing presses have failed to meet the huge demand for new bills.
• Although the overall situation at banks has improved, ATMs still have to do some catching up. Many cash vending machines are still out of cash even after 50 days since demonetisation.

Modi last addressed the nation on November 8, when he announced demonetisation of the old Rs 500 and Rs 1,000 currency notes. After demonetisation, Modi had said: “… help me for 50 days and I will give you the India you desired”.