The government has increased the limit on cash withdrawals and informed citizens that government hospitals, petrol pumps and toll booths will accept old notes of Rs. 500 and Rs. 1000 till November 24. The daily limit of withdrawal from ATMs was increased from Rs. 2000 to Rs. 2500 and exchange limit for old notes was also increased to Rs. 4,500 from Rs. 4,000.
The finance ministry has asked banks to scrap the Rs.10,000 daily withdrawal limit and increase the weekly withdrawal limit of Rs. 20,000 to Rs. 24,000. This is so customers can withdraw the entire amount in a single cheque and need not keep making trips to the bank.
— PIB India (@PIB_India) November 13, 2016
PM Narendra Modi held a meeting with cabinet ministers on Sunday night where these matters were discussed and the withdrawal limits were revised.
The new Rs. 500 and Rs. 2000 notes that were launched last week cannot be stacked in ATMs because they cannot fit in the machine. Union finance minister Arun Jaitley has said that recalibration of ATMs will take two weeks. Since the announcement there have been serpentine queues at banks and ATMs are quickly running out of cash. November 14 is a bank holiday which will only put more pressure on ATMs.