The new year may not be that rosy this time as there will be no flow of cash. Even in January the cash crunch will continue it looks like.SBI Chairperson Arundhati Bhattacharya recently indicated that restrictions on withdrawals could not be lifted entirely unless more cash is made available to banks.
After the demonetisation of old ₹500 and ₹1,000 notes, the government fixed a limit of ₹24,000 a week on withdrawal from bank accounts and 2,500 a day from ATMs in view of the currency crunch that followed.
The government and the RBI have not specified when the restrictions will be withdrawn.
Finance Secretary Ashok Lavasa had said the withdrawal cap would be reviewed after December 30.Even bank unions are of the opinion that the restrictions cannot be done away with in one go.
In all likelihood the restrictions on withdrawal would continue for some more time in the best interest of banks as well as customers, said All India Bank Officers’ Confederation (AIBOC) general secretary Harvinder Singh. The currency supply situation is known to everyone and it would be difficult to lift the limit from January 2, he pointed out.
