Bank and ATM Cash withdrawal Limits After demonetization (Banning Rs. 500 and Rs. 1000 Notes) | Maximum Cash that can be taken from ATM and Banks per day
With Rs. 500 and Rs. 1000 notes being banned in an unexpected move by PM Narendra Modi, everyone has been left wondering about what will happen next and yes, everyone is wondering why did all this happen in the first place!
There are two primary reasons for banning these two currency notes. First, the counterfeit currency notes of denominations 500 and 1000 are extensively used by terrorists across the border to spread terrorism in India and second, counterfeit or fake currency notes are harming India’s economy. Today, India is on its way to achieve global supremacy and emerge as an economic power. However, India’s growth is stunned not only by black money but also terrorism.
PM Modi’s decision to ban these notes was actually a well-thought-out policy that came after Pakistan – the sponsor state for global terrorism – violated several ceasefire agreements at Jammu and Kashmir. The demonetization of these currency notes will give a big blow to corruption, black money and terrorism.
Quick highlights of what will happen:
- 500 and Rs. 1000 currency notes demonetized since midnight of November 8, 2016.
- Banks will stay closed for November 9, 2016 so that they can cope with the new directives of government and RBI. However, online banking will not take a hit for this.
- ATMs will not function for November 9 and November 10.
- There will be a 72-hour buffer after midnight of November 8 when the demonetized currency notes will still be accepted in selected places.
- People can deposit these notes in banks and post offices till December 30, 2016.
- People can exchange these notes at banks and post offices upon furnishing proper ID proof till November 24. In case they fail to exchange these notes within that time, they will have time till 31st March 2017 where they will have to exchange the notes directly at RBI by giving a proper statement / declaration.
- No more than Rs. 4,500 can be exchanged till November 2016. From 18th November 2016 you can exchange only rs 2000. Exchange can be done only once for entire period. To ensure the complaince banks are using election commision inks to mark the right hand.
ATM Cash limits have changed after demonetization
While it is true that this bold move by the government will actually help to fight the problems of black money, corruption and terrorism, it will actually cause some problems for general people. Hopefully people will understand the true motive of this move and will support the same without causing any troubles for the government and Reserve Bank of India.
Demonetization alone would not be that effective and hence, the government directed the banks to put a limit of withdrawal.
The limits that have been set for now are given in the table below:
|Withdrawal from Banks||Cash Withdrawal in case of Marriage (per family, if KYC Complaint)||INR 2.5 Lakhs|
|Weekly limit for cash withdrawal||INR 2.4 Thousand|
|Weekly limit for cash withdrawal for Farmers if KYC Complaint||INR Rs 25 Thousand|
|Mandi Traders||Rs 10 Thouand per week)|
|Central Gov Group C Employees||They can opt for Rs 10 thousand cash in advance Salary|
|Withdrawal from ATM||Daily limit for cash withdrawal now*||INR 2.5 Thousand|
|Daily limit for cash withdrawal to be raised to*||INR 4 Thousand|
* This limit is for every card. It means that if you have 10 debit cards or ATM cards, you can withdraw the set limit for each card.
Now, do you think these moves by Modi government will help achieve the objectives that led to this demonetization decision? We think they will help. What about you?