Know about Savings Account transaction limits and rules in this article.
The road to building wealth begins with a Savings Account. The idea of the Savings Account is to deposit any spare money you have and earn interest on it. While a Savings Account is quite basic, it offers numerous facilities ranging from internet and mobile banking to ATM and debit card transactions. As an account holder, you should be well-versed with these rules and regulations and Savings Account transaction limits permitted by the RBI. Read on to know more about Savings Account Rules.
Let us go through the basic rules surrounding Savings Accounts
You must comply with the account balance maintenance rules set by your bank. You must ensure that your account always has the minimum balance amount as prescribed by your bank. If you fail to maintain the minimum balance required, your bank can penalise you.
Another crucial rule surrounds the cash withdrawal limit from Saving Account per day. You cannot withdraw more than the prescribed Savings Account withdrawal limit on any given day, especially at bank ATMs. The limit could range from INR 10,000 to INR 100,000, depending on the type of Savings Account you have. There are also specific limits on how much you can spend online using your debit card linked to your Savings Account.
Your Savings Account comes with a debit card, which you must use at least once in six months. You can use the card to withdraw cash at ATMs or pay for your retail store or online purchases. As a security feature, the bank deactivates the debit cards if you do not use them at least once in six months. You can reactivate the card by calling the customer service helpline.
Just like the debit card, you also must conduct at least one transaction on your Savings Account in a given financial year. If you do not use your account for prolonged periods, the bank may freeze your account and render it dormant.
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Most Savings Account rules are typically framed by the IT department, not to keep an eye on your finances but to curb black money practices. As an account holder, you should be aware of the Savings Account transaction limits to stay off the radar of the IT department.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.