Restrictions on Cash Withdrawal to Drag Longer: SBI Chairman

Arundhati Bhattacharya said the restriction on the cash withdrawal will decrease over an extended period of time.

SBI Chairperson, Arundhati Bhattacharya. (Photo: PTI)

With demonetisation bringing about a serious cash crunch in the economy, Arundhati Bhattacharya, Chairman of State Bank of India believes that the restrictions on the withdrawal of cash from ATMs and banks will continue for longer period of time.

Although Prime Minister Narendra Modi had promised that government will control the repercussions of demonetisation within 50 days, Bhattacharya is of the opinion that the banking restrictions cannot be lifted overnight, The Hindu reported.

When questioned whether banks are ready to meet the demand for cash if the restrictions are withdrawn, she replied:

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.

Arundhati said that the restriction on the cash withdrawal will decrease over an extended period of time. “Nobody wants everyone rushing to the banks thinking there are no restrictions so let me get back everything” she said.

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

Arundhati Bhattacharya

The Reserve Bank of India has not specified when the restrictions will be withdrawn.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 and for ATMs it is Rs 2,500.

Cash worth Rs 15.44 lakh crore has been withdrawn since 9 November and until 19 December, with the central bank infusing Rs 5.92 lakh crore in the economy.

(With inputs from The Hindu)