Know the bank withdrawal limit for cash transactions.
A savings account is a versatile financial tool that allows you to deposit and withdraw money at your convenience, serving as your first step toward building a financial corpus. However, to ensure that banks can effectively manage the cash flow needs of all their customers, cash withdrawal limits are set. These limits are established in consultation with the Reserve Bank of India. This article will explain the standard cash withdrawal limits imposed by banks, helping you navigate your banking experience with ease and confidence.
Cash withdrawal limit is placed on various withdrawal provisions. The limit also differs from branch to branch. You can refer to the below table for detailed information on withdrawal limits.
Cash Withdrawal Limits |
Details |
Based on Location |
Bank customers in metro cities have higher cash withdrawal limits due to higher expenses. In contrast, withdrawal limits are lower for customers in Tier I, II, III cities, and semi-rural and rural areas. |
For Cheque Transactions |
Most banks in India set a limit of INR 1 lakh per day for cash withdrawals by cheque, typically applicable to self-use or self-addressed cheques. |
Based on Account Type |
Current account holders have higher withdrawal limits compared to basic savings account holders. Priority savings account holders also enjoy higher cash withdrawal limits. |
For Branch vs. Non-branch transactions |
Higher cash withdrawal limits are provided when withdrawing from your home branch. Withdrawal limits are typically lower for non-home branch transactions. |
On ATM transactions |
ATM withdrawal limits depend on the account type. Priority accounts have higher limits, while regular accounts have slightly lower limits. Per an RBI mandate, you get 5 free transactions per month at your own bank ATMs and 3 free transactions at other bank ATMs; fees apply if exceeded. |
For Third-party transactions |
If a family member or friend withdraws cash on your behalf, the limit is lesser. For example, the withdrawal limit for a self-cheque is INR 100,000, but if the bearer of the cheque is a friend, the limit is INR 50,000. |
Cash withdrawal limitations are imposed by banks and ATMs to protect your money and maintain the efficiency of their operations. There are a few reasons for the limits:
Although cash withdrawal limitations can feel like an annoyance, being aware of them and managing them helps guarantee a positive banking experience.
It is crucial to comply with bank withdrawal limits based on your chosen method. Even with these cash withdrawal limits, you can still access your funds conveniently through various banking options, such as online transfers, ATM withdrawals, or in-branch services. Planning your withdrawals in advance can further ease the process, ensuring you have the funds when needed.
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For details on cash withdrawal limits and FAQs please click here.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.