Restrictions on cash withdrawal likely to stay longer: SBI chairmanEven as the exchange facility for demonetised notes will ends on December 30, State Bank of India chief Arundhati Bhattacharya believes that the restriction on cash withdrawal is likely to continue for longer period of
Even as the exchange facility for demonetised notes will ends on December 30, State Bank of India chief Arundhati Bhattacharya believes that the restriction on cash withdrawal is likely to continue for longer period of time.
"We do not expect the restrictions to go overnight until the banks get more cash," The Hindu quoted the SBI chairman as saying.
“The restrictions will be decreased over a period of time. Nobody wants everyone rushing to the banks thinking there are no restrictions so let me get back everything.” she added.
Responding to a question on whether banks are ready to meet the demand for cash if the restrictions are withdrawn, she said “We have to see… if there is cash I will give it, if there is no cash, whether restriction or no restriction, I cannot give it.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.”
“So I think the restrictions will go down slowly. It is not something that will happen just tomorrow.”
The Reserve Bank of India has not specified when the restrictions will be withdrawn. Currently the cap on the cash withdrawal from bank is at Rs 24,000 per week and for ATMs it is Rs 2,500 per day.
Cash worth Rs 15.44 lakh crore has been withdrawn since 9 November and until 19 December, with the central bank infusing Rs 5.92 lakh crore in the economy.