Demonetisation deadline: Banks want withdrawal limits to stay

There is least possibility that customers will be able to withdraw as much money as they want in 2017, as banks want cash withdrawal restrictions to remain in place.

New Delhi, Dec 28: With just two days to go before the 50-day cash deadline ends, banks have sought curbs on withdrawals, citing shortage of new currency. The banks have told the government that there is no adequate currency and hence the curbs on withdrawals must remain.

Prime Minister Narendra Modi had assured the nation that in 50 days the mechanism would be in place following the decision on note ban. The deadline ends on December 30.

In a communication to the finance ministry, the banks said if the curbs are lifted then there would be a mad rush at the banks by people to withdraw money. This would disrupt operations and hence restrictions must be in place until there is adequate currency, the banks added.

The communication comes following the government seeking an informal feedback from the banks on the situation. As of Wednesday, an individual can withdraw Rs 2,500 per day from ATMs and Rs 24,000 a week from banks. As per the assurance made by the PM, these curbs would be lifted after December 30.

However, banks feel unless and until more new currency notes are injected into the system, the curbs should stay. This is, however, not a recommendation made by the banks, but a feedback says a finance ministry official. The banks would ultimately have to follow what the government and the RBI decide.

OneIndia News