NEW DELHI: With the cash crunch situation easing, Reserve Bank may do away with the weekly withdrawal 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 cap at Rs 24,000 for saving account and Rs 1 lakh for current account holders. "I think the restrictions 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 executive director R K Gupta told PTI.It is entirely RBI's decision and the central bank would decide after making holistic assessment of the situation, he said.According to SBI's research report Ecowrap, "By the end of February, 78-88 per cent of the currency could be back in the system under the best case scenario in terms of an optimal currency distribution (more small denomination notes)," the report said, adding that "it seems within next 2 months things would be pretty close to normal. "Another senior public sector bank official said the situation is easing and it is a matter of weeks when the curb on withdrawal gets eased. This led to long queues at ATMs and bank branches.All over the country, the banks had to deal with huge rush of people who thronged their branches to deposit junked notes. The deadline for depositing old notes with banks ended on December 30.

Source: Economic Times January 26, 2017 05:16 UTC