Skip to main content

Withdrawal restrictions likely to goaway by Feb-end

By
With the cash crunch situation easing,the Reserve Bank of India(RBI)may do away with the weekly with drawal limits from banks as well as ATMs by the end of next month, bankers said.

The RBI had recently raised the ATM withdrawal limit to Rs.10,000 a day but maintained the weekly capat Rs.24,000 for saving account and Rs.1lakh for current accountholders.

"I think there strictions on withdrawal by RBI should be completely lifted by February end or by first half of March as cash situation is easing gradually," Bank of Maharashtra ExecutiveDirectorRKGuptasaid.

It is entirely RBIs decision and the central bank would decide after making holistic assessmentofthesituation,hesaid.

According to SBIs research report Ecow rap, "By the end of February,78-88 percent of the currencycould be back in the system under the best cases cenariointerms of anoptimalcurrencydistribution(moresmalldenomination notes),"thereportsaid,addingthat"itseems withinthenexttwomonthsthingswouldbe prettyclosetonormal." Anotherseniorpublicsectorbankofficial saidthesituationiseasinganditisamatterof weekswhenthecurbonwithdrawalgetseased.

"Myhunchisthatitshouldhappenbefore endofthecurrentfiscal,"theofficialsaid, adding,RBIhasbeenprogressivelyeasingthe curb.

TheRBIhadearlierincreasedthedaily withdrawallimitfromATMstoRs.4,500from Rs.2,500effectiveJanuary1,justadayafter50daydemonetisationperiodended.

Meanwhile,RBIGovernorUrjitPatelcould notsetatimeframebeforetheStanding CommitteeonFinanceforreturnofnormalcy inthebankingsystemevenasthecentralbank assertedthat~9.2lakhcroreor60percentof demonetisedcurrencyhasbeenreplaced.

InasurprisemoveonNovember8,Prime Minister Narendra Modi had announced demonetisationofold~500and~1,000notes.

Followingthedecision,theRBIhadput restrictionsonwithdrawalofcashfrom ATMsaswellasfrombankstodealwith shortageofnewhighdenominationcurrencynotes.ThisledtolongqueuesatATMs andbankbranches.

All over the country,the banks had to deal with hugerush ofpeoplewhothrongedtheir branchestodepositjunkednotes.Thedeadline fordepositingoldnoteswithbanksendedon December30.

The RBI had recently raised the ATM withdrawal limit to Rs.10,000 a day but maintainedtheweeklycapat~24,000for savingaccountand~1lakhforcurrent accountholders
Business Standard New Delhi,27th January 2017

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more