Good news for small traders: Withdrawal limit from current accounts doubled to Rs 1 lakh per week

New Delhi: In a major boost for small traders, the Reserve Bank of India (RBI) on Monday hiked the withdrawal limit from current accounts to Rs 1 lakh per week, double from the existing Rs 50,000.

"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 central bank said in a notification.

Following the demonetisation move by the government in November, withdrawals from ATMs, saving bank and current accounts had been limited.

However, the central bank on Monday raised the withdrawal limits for ATMs, saving bank and current accounts.

The weekly withdrawal limit of Rs 1 lakh, raised from the existing Rs 50,000 will surely come as a boost and ease the cash crunch of small traders.

The RBI also hiked the ATM withdrawal limits to Rs 10,000 per day from the existing Rs 4,500.

However, the central bank retained the weekly withdrawal limits to 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," RBI said, adding that it will be operative within the existing overall weekly limit.

RBI had placed limits on cash withdrawals following demonetisation of old Rs 500 and Rs 1,000 notes on November 9, 2016.