Mumbai, Jan. 16: The Reserve Bank of India (RBI) today more than doubled the ATM withdrawal limit to Rs 10,000 per day but retained the weekly ceiling of Rs 24,000.

The central bank also raised the weekly withdrawal limit from current accounts to Rs 1 lakh from Rs 50,000, which could provide some relief to small traders. Both these changes will be applicable with immediate effect.

“On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect,” the RBI said in a notification. 

The ATM daily withdrawal limit was last revised on December 30 when the RBI had raised it to Rs 4,500 from Rs 2,500, effective January 1.

“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,” the  RBI today said, adding that the relaxation will be operative within the existing overall weekly limit which pertains to withdrawals from both ATMs and over the counter.

The revisions come at a time the supply of currency, particularly the new Rs 500 notes has improved, leading to shorter queues in many locations. However, reports suggest that many ATMs continue to remain cash-starved.

According to a recent estimate by the Economic Research Department of the State Bank of India (SBI), 75 per cent of the total value of scrapped notes could be replaced by the end of this month, given the current phase of rapid printing. 

The demonetisation on November 8 saw 17.165 billion pieces of Rs 500 notes and 6.858 billion pieces of Rs 1,000 notes being withdrawn.

While bankers expect that the current restrictions will be removed only after there is adequate supply of new notes, many hoped that the RBI would also raise the weekly withdrawal limit from the current Rs 24,000. 

The central bank is yet to release data on new currency printed recently.