ATM Cash Withdrawal Limits: What You Need to Know

Key Takeaways

• The ATM withdrawal limit is the maximum permissible limit that a bank places on ATM transactions per day.
• Most Indian banks permit five free transactions at their own bank ATMs. However for DBS Bank customers on DBS ATMs, there are NIL charges on all ATM withdrawals & other non-Financial transactions.
• You may also withdraw funds from other banks' ATMs up to three times in metro cities and five times in non-metro cities each month.
• Banks charge nominal fees if you exceed the ATM transaction limit.
• The RBI has permitted banks to increase ATM transaction costs, starting from May 1, 2025.
• These charges shall also apply to transactions done at Cash Recycler Machines (other than for cash deposit transactions).

Introduced two decades ago, Automated Teller Machines (ATMs) allow us to withdraw cash at any given time without standing in long queues at the bank. However, since an ATM is a machine that can hold a limited amount of money, banks had to ensure they could meet the cash needs of their millions of customers. Consequently, banks set limits on the withdrawal amounts and determined the number of free withdrawals permitted each month. As a bank customer, you must abide by the bank’s ATM withdrawal limits. Here is all you need to know.

ATM Withdrawal Limits: What They Mean for Your Banking

ATM Withdrawal Limit refers to the maximum limit or number of times you can use your ATM card at your own or other bank ATMs. The bank also sets a limit on the cash amount you can withdraw per transaction and permits a fixed number of transactions at its own and other bank ATMs. Besides the cash withdrawal limit from ATM, the ATM limit also encompasses any other transactions conducted using the ATM card, such as checking account balances and obtaining mini statements.

Why ATM Withdrawal Limits Are Essential for Security and Cash Flow

The ATM is a medium-sized machine. There is only so much money that the machine can hold and dispense to a bank’s broad customer base at a given time. By setting a limit, banks can efficiently streamline and manage the cash flow. Furthermore, banks treat ATM withdrawal limits as a security measure too. For instance, if your debit card falls into the wrong hands, the perpetrator can withdraw all your savings in a single transaction.

Maximum Withdrawal from ATM Explained

The limit for maximum withdrawal from ATMs differs from bank to bank. Most banks allow you to withdraw between INR 20,000 and INR 50,000 per day from an ATM. Also, each transaction may be limited to a maximum of INR 10,000. Thus, if you wish to withdraw INR 30,000, you may have to conduct three consecutive transactions of INR 10,000 each.

According to the Reserve Bank of India, you are entitled to five free ATM transactions every month at your banks’ ATMs, three free transactions at other banks’ ATMs in metro areas, and five free transactions at other bank’s ATMs in non-metro regions. If you exceed the free transaction limit, you have to pay a nominal fee. The RBI has permitted banks to charge Rs.23 per transaction, effective 1^st May 2025.

Your cash withdrawal limit also depends on the type of bank account you hold. For instance, premium accounts get higher daily withdrawal limits with no specific caps on the number of transactions compared to regular savings account holders.

The cash withdrawal limit from banks helps them to efficiently manage their customers’ cash flow needs. It also helps the customers to withdraw a larger amount of money in a single transaction instead of withdrawing funds in smaller denominations multiple times. By abiding by your bank’s withdrawal limits, you can avoid incurring excess transaction fees.

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