The Reserve Bank of India on Monday increased the withdrawal limit from ATM's from Rs 4,500 to Rs 10,000 per day per card. However, the weekly withdrawal limit from banks remain at Rs 24,000 per week.
"The limit on withdrawals from ATMs has been enhanced from the current limit of Rs 4,500 to Rs 10,000 per day per card (It will be operative within the existing overall weekly limit)," a notification issued by the RBI said.
"The limit on withdrawal from current accounts has been enhanced from the current limit of Rs 50,000 per week to Rs 1,00,000 per week and it extends to overdraft and cash credit accounts also. There are no changes in the other conditions. The relaxations as provided in our circular dated November 28, 2016 will continue," it added.
The RBI also hiked the cash withdrawal from current accounts to Rs 1 lakh per week from the existing Rs 50,000, a move that will majorly boost the cash position of small traders.
The hike in withdrawal limit comes with immediate effect, the Reserve Bank of India said in a statement.
Following the demonetisation of old Rs 500/1000 notes on November 8, limits had been imposed on withdrawal of cash from banks and ATM's.
Earlier, the RBI raised the daily ATM cash withdrawal limit from Rs 2,500 the rate fixed post note ban to Rs 4,500 a day from January 1.