ATM Cash Withdrawal Limit and Transaction Charges

• An ATM cash withdrawal limit restricts the amount you can withdraw from an ATM (Automated Teller Machine).
• Withdrawal limits promote responsible spending and help you stick to your budget, instilling financial discipline.
• The withdrawal limits vary from bank to bank and depend on the transaction type and savings account you hold.

An ATM (Automated Teller Machine) offers the comfort of withdrawing cash at any time. You enjoy the freedom of accessing funds at your convenience, eliminating the need to worry about banking hours.However, you should know about the ATM cash withdrawal limit, which restricts the amount you can withdraw from an ATM. This limit depends on various factors, including your account type .Through this blog, we highlight the ATM withdrawal limit and discuss how you can increase this limit.

Most banks and non-banking institutions have an ATM withdrawal limit, which is useful for various reasons, which are elaborated below:

Promotes Responsible Spending

When you know there is a withdrawal limit, you can plan your expenses to avoid overspending, create a budget, and manage your spending habits consciously.

Serves As a Security Measure

An ATM withdrawal limit serves as an important security measure. If your card and PIN get into the wrong hands, the fraudster will not be able to withdraw all your savings through one swipe, giving you time to take corrective actions.

Helps Banks Manage Liquidity

Imagine if everyone withdraws money without any restrictions; there may be a sudden increase in demand for cash, putting strain on the bank’s cash reserves and affecting its ability to meet customer demands. Hence, having an ATM cash withdrawal limit helps banks manage their liquidity better.

Meets Regulatory Compliance

Financial regulators often mandate an ATM cash withdrawal limit, which banks have to adhere to. Thus, an ATM withdrawal limit helps banks meet regulatory compliance and contribute to maintaining stability in the financial ecosystem.

Keeps a Check on Illegal Activities

An ATM cash withdrawal limit helps banks keep a check on suspicious activities. Withdrawal restrictions hinder the movement of large amounts of money, helping prevent money laundering and unlawful activities.

Here are some typical daily withdrawal limits:

Domestic Withdrawals

Domestic withdrawal limit refers to the maximum amount you can withdraw from an ATM in India. While the ATM cash withdrawal limit can vary among banks, some allow withdrawals up to ₹25,000.

Purchase Limits

The purchase limit is the maximum amount you can spend on purchases. This limit varies from bank to bank as well. For instance, some banks allow a daily limit of ₹50,000 for business transactions. Also Read: Everything About ATM: Automated Teller Machine

The ATM withdrawal limit depends on the account type and the card variant you hold. Your card issuer can explain the limit applicable in your case. However, there are still some limits that you should be aware of:

Within India

Some banks offer daily withdrawal limits of ₹25,000 for regular cards. The limits are larger for some premium cards and may be as high as ₹1 lakh. These limits indicate the benefits of upgrading to a premium card for enjoying enhanced access to your funds.

Outside India

Some regular cards may not facilitate international transactions. However, certain premium cards support international transactions up to ₹1 lakh. Always make sure to know your account's specific limits and plan your expenses within the ATM withdrawal limit.

If you want to withdraw funds over and above your ATM withdrawal limit, here is what you can do:

Withdrawal Form

You can consider going to your nearest bank branch and letting the bank representative know your situation. You may have to fill out a cash withdrawal form and submit identity documents for verification purposes.

Self-Cheque

Another way of accessing funds beyond the ATM withdrawal limit is a self-cheque. You can write a self-cheque and withdraw the funds needed. However, you must note that self-cheque withdrawals also have a limit. Check with your bank before writing the cheque.

Credit Cards

You can always use credit cards for larger transactions. What is even more interesting is depending on your credit card type, you can earn reward points and enjoy other benefits like dining discounts, airport lounge access, etc.

You can increase your ATM withdrawal limit through various methods like contacting the customer support or visiting the nearest branch.

Customer Support

Call customer support and share with the customer care representative your request to increase the ATM withdrawal limit. The representative will help you to set it to the default threshold. In case you want the limit to be higher, you can enquire about the applicable process.

Nearest Branch

Similar to the customer care representative, you can talk to a bank representative in the nearest branch. You can request a higher ATM withdrawal limit and obtain the information required for further processing.

An ATM withdrawal limit encourages you to plan your expenses and spend within the budget. This instils financial discipline and you can save money towards your financial goals, giving you financial security over the long run.However, there may be instances where you need funds over and above the withdrawal limit or you want to spend on a larger transaction. In such cases, a credit card is a viable option.Credit cards offer greater purchase flexibility, interest-free credit for a certain period, and reward points. Moreover, they also help improve your credit score, increasing your chances of securing a loan in future on favourable terms, such as lower interest rates.

Banks typically allow five free ATM withdrawals every month. Thereafter, you need to pay ATM withdrawal charges. Here is what you should know about these charges.

• Banks levy ATM transaction charges as per the guidelines of the Reserve Bank of India.
• You are normally required to pay up to ₹21 per transaction, once the free transaction limit is exhausted. Talk to your bank to understand the specific charges applicable.

Here are some simple ways to avoid paying ATM charges:

Partnered ATMs

Using in-network ATMs can help you avoid ATM charges. Check with your card issuer to see if it has partnered with other organisations or financial institutions that let you access other ATMs for free.

Debit Card

Most merchants accept debit card payments. Thus, when at a merchant store, you must swipe your card instead of withdrawing money and paying in cash. This helps reduce your ATM withdrawals and charges.

Online Transactions

Consider using mobile or internet banking to make payments quickly and conveniently. This lets you track your ATM transactions, ensuring withdrawals only when necessary, minimising potential charges. Also Read: