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Limits on Drawing Money not Permanent

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The Reserve Bank of India (RBI) assured people on Wednesday that it has no plans to permanently put a cap on withdrawal limits, asserting that the money belongs to the people.
Addressing the media after the fifth bi-monthly monetary policy review, RBI Governor Urjit Patel said there will be restrictions only during the transition process resulting from demonetisation.
“The money in the bank is yours,“ said Patel. “There are some controls on withdrawal, but only during this transition phase.“
The RBI had put a limit on withdrawal from automated teller machines and bank branches post demonetisation.Customers, for instance, can withdraw Rs.2,500 per day from
ATMs that are recalibrated and Rs.2,000 from those yet to be recalibrated. They can withdraw up to Rs.24,000 from bank branches in a week. However, withdrawal limits for farmers have been fixed at Rs.25,000 a week. The central bank governor said that large quantities of currency notes in various denominations are in supply and are being continuously pumped into the system. ATMs yet to be recalibrated continue to dispense `50 and `100 bank notes. Around 95% of the 2.2 lakh ATMs have been recalibrated.
“I don't think there has been an issue of trust deficit,“ said Patel. “Most people tell me that it (demonetisation) was a good move as it will help fight check terrorist financing and black money.This is a transition issue, not a long-term worry .“
RBI appealed to the public not to hoard currency and re-circulate it into the system. There are only fewer number of new notes available even if the RBI and government print them at full capacity .
“The withdrawal limits are constantly on our radar,“ said R Gandhi, deputy governor, RBI.“We are constantly recalibrating the needs of the public.“
The Economic Times New Delhi,08th December 2016

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