Following expiry of the deadline to deposit demonetised currency in banks, the RBI on Friday relaxed the daily ATM withdrawal limit to Rs 4,500 from the earlier cap of Rs 2,500, with this facility, to be effective from January 1.
"On a review of the position, the daily limit of withdrawal from ATMs has been increased with effect from January 1, 2017, from the existing Rs 2,500 to Rs 4,500 per day per card," the Reserve Bank of India said in a notification issued late on Friday.
The RBI further said "there is no change in weekly withdrawal limits", which remains at Rs 24,000.
The central bank also asked banks to ensure that disbursals on ATMs should predominantly be in the denomination of Rs 500.
As per data released by the RBI on December 21, it has supplied currency amounting to Rs 5.92 lakh crore till December 19, as against the Rs 15.4 lakh crore pulled out of the system through the demonetisation of high-value currency announced on November 8.
On Friday, the eve of the deadline for citizens to deposit demonetised currency in banks, RBI Governor Urjit Patel said that demonetisation will have a transformative effect on the economy going forward, despite some short-term disruptions and "public hardship".
"The withdrawal of specified bank notes will impart far reaching changes going forward. It is expected to significantly transform the domestic economy," Patel said in his foreword to the half-yearly Financial Stability Report.
He said the increasing adoption of digital modes of payments will lead to greater intermediation, efficiency gains, accountability and transparency.
Patel acknowledged there have been short-term disruptions and hardship to the public because of the demonetisation of high value currency.
On the domestic macroeconomic front, condition remain "stable" with a cool-down in inflation, the RBI Governor said, adding that the growth momentum has "slackened" recently.