The New Year 2017 eve, it seems, has some respite in store for the cash starved populace as the government is expected to increase cash withdrawal limit after December 30, last day for depositing discarded notes in bank accounts.
After that, ‘select’ holders of scrapped notes will have to approach Reserve Bank of India for submitting the specified denominations.
Earlier, the government had indicated that it will increase the cash withdrawal limit provided the banking system received 80 per cent of total currency in circulation in new legal tender.
Presently, an individual can withdraw Rs 2,500 a day through ATM and Rs 24,000 a week through cheques at bank branches. Apart from that, several other exemptions have also been granted.
For instance, for bearing marriage expenses, an individual is allowed to withdraw Rs 2.5 lakh from KYC compliant account. Traders who took several representations to Finance Ministry were allowed to withdraw Rs 50,000 from current account that fulfills KYC norms.
As of now, there is no clarification from government’s side up to what extent it will increase the cash withdrawal limit. However, the decision is highly likely as banks have received over 90 per cent of Rs 15.4 lakh crore worth of demonetised notes.
December 30 is the last day for depositing scrapped Old High Denomination currency notes of Rs 1,000 and Rs 5,000 value in bank accounts. It is highly unlikely that the government would grant any further extension in the deadline for depositing specified notes discarded on November 8.
The economy lost over Rs 15 lakh crore worth of currency notes due to demonetisation as Rs 1,000 and Rs 5,000 notes constituted 86 per cent of total currency in circulation. Rest 14 per cent of currency in circulation was filled by lower denomination notes.