India central bank relaxes cash withdrawal limit with immediate effect

People queue outside an ATM of State Bank of India (SBI) to withdraw money in Kolkata, India, November 22, 2016. REUTERS/Rupak De Chowdhuri

MUMBAI (Reuters) - India’s central bank on Monday relaxed cash withdrawal limits from automated teller machines (ATMs) and current accounts with immediate effect.

The Reserve Bank of India has allowed individuals to withdraw upto 10,000 rupees ($146.84) per debit card per day from ATMs, higher than the 4,500 rupees currently. However, the overall weekly withdrawal limit of 24,000 rupees per card remains unchanged, it said in a release.

The central bank also increased the withdrawal limits from current accounts to 100,000 rupees per week from 50,000 rupees earlier and said this facility will also be extended to overdraft, cash credit accounts.

The RBI had imposed these limits in November after the government announced a ban on all high-value currency notes, and said it would replace them with new notes.

The withdrawal limits are unlikely to be removed completely until the RBI has supplied the economy with sufficient amount of new notes, analysts said.

Reporting by Suvashree Dey Choudhury; Editing by Biju Dwarakanath