Now, withdraw Rs 24,000 from ATMs; no cap on current accounts

MUMBAI: Eighty-five days after demonetisation was announced on November 8, savings bank account holders will be allowed to withdraw up to Rs 24,000 from ATMs from February 1, while all withdrawal limits have been waived for current account holders. The RBI said the Rs 24,000 weekly withdrawal limit on savings accounts will continue for now but is being reviewed and could be scrapped in the near future. RBI said all limits on withdrawal have been removed for current accounts, cash credit accounts and overdraft accounts with immediate effect. Small businessmen, who are issued ATM cards for their current accounts, can withdraw all their cash from ATMs. However, this would be subject to the prudential limit fixed by each bank for its customers. Tax experts say that the withdrawal of limits raises the spectre of a banking cash transaction tax in the budget. Earlier, with the limits, a tax on withdrawals seemed less likely . "Now Rs 1,900 is the magic number that everyone tries to withdraw from ATMs. Withdrawing this amount gives them three notes of Rs 500 denomination and four of Rs 100."