Everything You Need to Know about ATM Withdrawal Limits and Transaction Charges

An ATM withdrawal limit is the maximum amount of cash you can withdraw from an ATM on any given day. Banks generally impose these limits to protect your funds. This threshold limit will keep losses to a minimum if your card gets lost or stolen. Naturally, each bank has its own per day ATM withdrawal limit based on account type and multiple other factors. This limit typically ranges from ₹10,000 to ₹50,000.

Read on to understand the factors and charges involved in cash withdrawals through an ATM.

Factors Affecting Your Daily ATM Withdrawal Limit

Every bank sets its own daily cap. Most banks have a set limit of around ₹10,000 per day. Others, especially for premium accounts, can go as high as ₹50,000. These factors affect your withdrawal limit:

• The type of account you hold: Premium accounts or accounts with higher balances receive higher limits compared to standard savings or current accounts. 
• Your relationship with the bank: Your history with the bank matters. Long-term customers tend to enjoy higher limits. 
• RBI rules and guidelines: Regulatory bodies, especially the Reserve Bank of India, set certain guidelines that banks must follow. Banks need to comply with these regulations by balancing customer convenience with security concerns.
• Logistical needs of your bank: Banks set withdrawal limits to control the cash flow through these machines. A higher limit could lead to more frequent large withdrawals, increasing the risk of cash shortages or ATM downtime.
• Banking trends: From paying bills to transferring funds or checking balances online, there is a massive shift towards digital banking. This reduces your reliance on cash, lowering your withdrawal limit. 

Next time you wonder, ‘How much i can withdraw from ATM?’, remember that the answer varies. It depends on your bank’s limits, RBI guidelines, and account type. Knowing this will help you avoid hassles during emergencies.

ATM Transaction Limits and Charges

In addition to the withdrawal amount, banks may also enforce ATM transaction limits. Many banks now permit only a limited number of free ATM transactions each month. This count includes cash withdrawals as well as non-financial transactions like balance inquiries or mini statements. Once you exceed this free transaction quota, which is 5 times a month, additional withdrawals may incur ATM transaction charges. These charges are ₹21 for each transaction and are designed to cover the increased processing costs and interchange fees.

Also Read: ATM Card & Annual Maintenance Charges

How to Avoid ATM Charges?

Avoiding unnecessary ATM fees is possible. You can use these smart strategies:

• Use In-Network ATMs: Many banks partner with other financial institutions, letting you use a broader network of ATMs without incurring fees.
• Bank on Digital Transactions: You need not visit the ATM multiple times. Simply consider paying bills, transferring funds, or checking your balance online or via mobile banking apps.
• Opt for Card Payments: Wherever possible, swipe your card instead of withdrawing cash. 

Can You Increase Your ATM Withdrawal Limit?

Yes, you can always get in touch with your bank to explain why you need an increase in your daily limit. They may offer you a temporary or permanent increase based on factors like your account history, customer relationship, and spending patterns. 

Once you understand your ATM withdrawal limit and ATM transaction limits you can manage cash efficiently. It pays to plan ahead, so use in-network ATMs where possible, and consider increasing your limit to avoid unnecessary fees.

Instead of standing in ATM queues to withdraw cash, consider paying via Fibe Axis Bank Credit Card and clearing those bills online. Not only does this save time, but it also offers benefits like zero joining fee, up to 3% cashback on certain categories, and added perks such as fuel surcharge waivers. Simplify your financial transactions while adding rewards to your everyday spending with Fibe! 

FAQs

Is it possible to withdraw ₹30,000 from an ATM?

How much money can take from ATM really depends on your bank’s withdrawal limit. If it falls around ₹30,000 then you can. However, if you have a limit that’s lower you’ll need to pay a transaction fee. 

Why do banks set the ATM withdrawal limit?

Banks have these limits in place to protect you against the risk of financial loss. So if your card is misused or stolen you won’t face a huge loss. Apart from this, these limits also help manage the ATM network’s capacity.

How many free ATM transactions can I make in a month?

This varies by bank. Most of them allow a fixed number of 5 free transactions including both cash withdrawals and other services like balance checks. Once you exhaust this number, a transaction fee will be charged every time you use the ATM.

Can I increase my daily ATM withdrawal limit permanently?

Yes, you can request a permanent increase in the withdrawal limit at your bank. The approval would depend on your bank’s policies, your account history and your overall financial behaviour. 

Are there additional fees for ATM transactions in other cities?

Again, this depends on each banks policies. But yes in most cases, using an ATM outside your bank’s network or in another city can lead to extra charges.