The RBI on Monday hiked the daily ATM withdrawal limit from Rs 4,500 to Rs 10,000 and doubled the weekly Current Account withdrawal limit to Rs 1 lakh.

The withdrawals from ATMs will be operative within the existing overall weekly limit of Rs 24,000, a Reserve Bank of India communique said.

"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.

On December 31, the RBI relaxed the daily ATM withdrawal limit to Rs 4,500 from the earlier cap of Rs 2,500.

The enhanced Current Account withdrawal has been extended to overdraft and cash credit accounts, the RBI said.

The caps followed the November 8 government decision to demonetise the Rs 500 and Rs 1,000 notes, a decision which triggered widespread cash crunch in the country.