In the first phase, the withdrawal limit will be raised to Rs 50,000 from Rs 24,000 a week, effective February 20.
The limits on cash withdrawals from savings bank account will be withdrawn completely from March 13. As of now, there is no limit on current account and there is a cap of Rs 50,000 for farmers a week and Rs 2.5 lakh for marriage.
As on January 27, RBI said currency in circulation was worth Rs 9.92 lakh crore.
After the note ban on November 8, Reserve Bank had capped withdrawal limits on ATMs and bank branches. It raised limits from Rs 2,000 a day to Rs 4,500 a day to Rs 10,000 a day while maintaining the overall weekly ceiling of Rs 24,000.
Restrictions on cash withdrawal had resulted in long ATM queues after the November move.