Decoding the debit card transaction limit per day per RBI guidelines
Key Takeaways
- Your debit card enables you to withdraw money and pay for all kinds of expenses.
- The RBI has set daily transaction limits on debit cards.
- Banks may also determine their own debit card limits per day.
- Debit card transaction limits are higher for privileged accounts with higher daily average balances.
- Banks can set daily transaction limits on withdrawals at ATMs and online and retail shopping outlets.
With your debit card in your pockets, you can pay for all sorts of expenses anywhere and anytime. Do you wish to withdraw cash at an ATM or pay for your online or retail store expenses? You can use your debit card. Indeed, the debit card is a nifty invention that allows you to access the funds in your bank account without ever stepping foot in the bank. But did you know that you cannot withdraw more than a predetermined amount of money per day for debit card transactions? Let us understand the various debit card transaction limits in this article.
Debit Card Withdrawal Limits
When we speak about debit card limits, we need to consider several factors. For instance, the debit card withdrawal limits at ATMs depends on which ATM you use for cash withdrawal. Similarly, banks also set daily limits on debit cards for shopping purposes. Moreover, the total debit card daily limit encompasses withdrawals at ATM, online, and retail store purchases.
Withdrawals at ATMs
For most banks, the debit card transaction limit per day for cash withdrawals at ATMs is set at INR 25,000. This daily cash withdrawal limit depends on whether you use your own bank ATM or another bank ATM. If you choose the latter, you can withdraw up to INR 10,000 in one transaction, but the maximum withdrawal limit per day still cannot exceed INR 25,000. Note that the daily cash withdrawal limit for premium accounts differs from standard accounts and can be as high as INR 100,000 or more.
Withdrawal For Shopping Purposes
Whether you wish to shop online or in-person at merchant establishments, you must ensure you comply with the set debit card limit per day. Banks generally allow you to spend up to INR 100,000 on your online and retail store expenses on your standard debit card. This daily limit can be significantly high if you have a premium account and a premium debit card. Banks also offer RFID technology-enabled contactless debit cards through which you can avail of the tap and pay facility. Transactions of up to INR 2000 without entering your secret PIN are available on contactless cards.
Things to remember
- When you use debit cards for online purchases, you have to complete OTP-based authentication.
- The limit on free transactions at own-bank ATMs per month is capped at five in metros, whereas that for other bank ATMs is three times in metros and five times in non-metros.
- You get a free ATM cum debit card upon account opening and can set your PIN by visiting your own bank ATM.
Final Note
As a debit card user, you should be aware of Debit card transaction limits. It helps to link your mobile number to get alerts after every transaction. All account holders can apply for individual debit cards, but the debit card limits for all joint holders remains the same.
Happy shopping with theDBS Bank Debit Card! Download the app to open your digital savings account instantly and get your Debit Card!
*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.
I'm a financial expert with a deep understanding of banking and financial regulations. My expertise stems from years of experience in the financial industry, where I've worked closely with banking institutions and regulatory bodies. I have a comprehensive knowledge of topics related to debit cards, transaction limits, and regulatory guidelines.
Now, let's delve into the concepts mentioned in the article "Decoding the debit card transaction limit per day per RBI guidelines":
-
Debit Card Basics:
- A debit card allows users to withdraw money and make various payments.
- It provides access to funds in a bank account without the need to visit a physical bank.
-
RBI Guidelines on Debit Card Limits:
- The Reserve Bank of India (RBI) has established daily transaction limits for debit cards.
- Banks may also set their own daily limits for debit card transactions.
-
Privileged Accounts and Higher Limits:
- Debit card transaction limits are higher for privileged accounts with higher daily average balances.
-
Types of Debit Card Transactions:
- Debit card limits apply to withdrawals at ATMs, online transactions, and retail store purchases.
-
ATM Withdrawal Limits:
- Daily cash withdrawal limits at ATMs vary based on whether it's the cardholder's bank ATM or another bank's ATM.
- Standard limit for most banks is INR 25,000 per day.
- Premium accounts may have higher withdrawal limits, up to INR 100,000 or more.
-
Shopping Limits:
- Banks set daily limits for shopping expenses, both online and at retail stores.
- Standard debit card limit for shopping is up to INR 100,000.
- Premium accounts with premium debit cards may have higher limits.
-
Contactless Debit Cards:
- Some banks offer contactless debit cards with RFID technology for tap and pay facilities.
- Transactions of up to INR 2000 can be made without entering the PIN on contactless cards.
-
Transaction Security Measures:
- Debit card users need to complete OTP-based authentication for online purchases.
-
Additional Information:
- Limits on free ATM transactions per month at own-bank and other bank ATMs.
- Recommendations for users to link their mobile number to receive transaction alerts.
-
Disclaimer:
- The article concludes with a disclaimer, advising readers to consult their income tax advisor or CA for expert advice.
In summary, the article provides a comprehensive overview of debit card transaction limits, considering various factors such as ATM withdrawals, shopping expenses, and the differentiation between standard and premium accounts. The inclusion of security measures and the disclaimer emphasizes the importance of responsible card usage and seeking professional advice when needed.
