Demonetisation: Restrictions on cash withdrawal likely to last longer, says State Bank of India chief

WION New Delhi, Delhi, India Dec 22, 2016, 01.05 PM(IST)

A customer counts Indian 100 rupee currency notes after withdrawing money at a bank . Photograph:( AFP )

State Bank of India chairman Arundhati Bhattacharya has said she does not expect restrictions on cash withdrawal from banks and ATM to go overnight until the banks get more cash.

“We have to see… if there is cash I will give it, if there is no cash, whether restriction or no restriction, I cannot give it. We can only give what is available with me,” she said in a press conference to a question on whether banks are ready for the cash demand if restrictions are withdrawn, Indian daily The Hindu reported.

According to the Hindu, on being asked when the restrictions will be withdrawn, she said, “The restrictions will be decreased over a period of time. Nobody wants everyone rushing to the bank's thinking there are no restrictions so let me get back everything.”

“So I think the restrictions will go down slowly. It is not something that will happen just tomorrow.”

A person is allowed to withdraw Rs 24,000 from a branch in a week and Rs 2,500 from an ATM.

There is no word from Reserve Bank of India on when the restrictions will be withdrawn.

Till December 19, the Reserve Bank of India has got in Rs.5.92 lakh crore in the system and legal tenders amounting to Rs.15.44 lakh crore were withdrawn from November 9, The Hindu reported.