Mumbai: The Reserve Bank of India (RBI) has eased the caps on withdrawals from automated teller machines (ATM), with effect from 1 January.

In the new year, customers will be allowed to withdraw up to Rs4,500 per day per card, according to the new RBI guidelines which were released closer to midnight on Friday. Prior to this change, customers could only withdraw up to Rs2,500 per day, per card.

In its guidelines, the regulator has clarified that these enhanced withdrawal limits should be largely in the Rs500 notes. The enhanced ATM withdrawal limits will be subject to the weekly withdrawal limit of Rs24,000, which shall continue, the central bank said in its guidelines.

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Following demonetisation of old Rs500 and Rs1,000 notes on 8 November, limits had been imposed on withdrawal of cash from banks as well as ATMs.

Earlier on Friday, the RBI had permitted White Label ATM Operators (WLAOs) to source cash from retail outlets. Most of the White Label ATMs are running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank(s).

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Friday was the last day to deposit the invalid currency notes in banks. However, people still have time to exchange the currency notes at designated RBI counters till 31 March after giving valid reasons for not depositing defunct notes in their accounts by 30 December.

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