05 June 2024 | By INDIE
Banks and financial institutions offer savings accounts as a financial tool that empowers you to save money. You can keep your income in the savings account for easy access and also earn interest on the money. Savings accounts come with an option to issue debit cards or ATM cards for easy access to your money. However, the card issued by every bank comes with a specific ATM withdrawal limit with the intent to safely keep your money. This article sheds light on the cash withdrawal limits applicable on ATM cards/debit cards issued by various banks and financial institutions.
Banks and financial institutions issue ATM (Automated Teller Machine) cards or debit cards to their savings bank account and current account holders for various reasons. The reasons include enhancing customer’s banking experience, providing convenience, making funds accessible easily, and more.
Banks and financial institutions have set the maximum limit on cash withdrawals from savings accounts or current accounts through automated teller machines (ATMs). The withdrawal limit varies from one bank to another, depending on various parameters. ATM withdrawal limit may vary for each type of account within the same bank as well. The following are some of the parameters that influence ATM withdrawal limits:
The limit of cash withdrawal from an ATM depends on the type of savings account or current account you hold with the bank. Depending on the account type maintained with the bank, the ATM limit per day may vary generally from INR 10,000 to INR 50,000.
Also read: Difference between current account and savings account
Each bank can have its standard policy regarding ATM cash transactions. Depending on your relationship with the bank, the account type, and the balance maintained, banks can set ATM withdrawal limits for your account.
Hence, it is important to know the withdrawal limit on your ATM card/debit card before you open a savings account or current account with any bank. You can avail of this information from the bank’s website, by visiting bank branches, or through customer care services.
The following are the reasons for setting up ATM max withdrawal limits:
One of the main reasons to set ATM withdrawal limits is to protect the customer’s account or funds from potential risks associated with taking out large sums of money. Having an ATM limit per day reduces the chances of robbery and the misuse of lost ATM cards. For example, your debit card for the savings account having a maximum ATM withdrawal limit of INR 10,000 and INR 50,000 at the point of sale, would restrict the usage of the card once the threshold limit is crossed.
Also read: 5 benefits of having a savings account
ATM max withdrawal limit helps in reducing fraud and helps banks manage risks of fraudulent activities at ATMs. It limits the large-scale potential losses.
With limits set on ATM withdrawal transactions, banks can manage liquidity and cash flow more efficiently. They do not need to frequently refill the ATMs all day and can efficiently operate their ATM networks.
As implied by the banking regulator, setting limits on ATM withdrawals can help banks stay compliant with ‘anti-money laundering’ guidelines as it restricts the large cash transactions at ATMs.
To conclude, the ATM withdrawal limit may vary depending on the account type you hold and the standard policies of the bank you choose. It is important to check these details to avail of banking services that are aligned with your needs and preferences. It is also vital to understand that these limits are set by the banks mainly to protect customers.
