What is the Cash Deposit Limit in a Savings Account?

Posted on Friday, February 2nd, 2024 | By IndusInd Bank

Banks and financial institutions are governed by regulations of the Reserve Bank of India, and you must acquaint yourself with these rules that shape the usage of your savings account. An important aspect that decides the account usage ceiling is the cash deposit limit. It is the maximum amount that you can deposit in your savings account within a time frame, usually daily or per-transaction basis. Understand the various aspects surrounding cash deposit limits in a savings account so that you can make maximum use of your account as per your financial needs. 

Why Do Banks Have Cash Deposit Limits in a Savings Account?  

Cash deposit limits in savings accounts are set up for several reasons pertaining to financial security and fraud. Here are a few reasons why banks have cash deposit limits on savings accounts. 

• The mitigation of risks associated with money laundering and fraudulent activities.  
• Imposing limits ensures that large sums of cash don’t traverse unnoticed, offering a safeguard against illicit financial manoeuvres.  
• It promotes transparency and aids in tracking financial transactions with greater efficiency. 

Cash Deposit Limits in a Savings Account 

Understanding the specific cash deposit limits in a savings account can help you maximise your efficiency in operating your savings account. These limits, often stipulated by individual banks falling under the guidelines of the RBI, serve as a barricade against potential misuse of funds. A common daily cash deposit limit in savings accounts is ₹50,000 and any amount higher than this requires your PAN details or Form 60/61 in case you do not have a PAN card. Depositing cash above the limit of ₹1 lakh may attract the attention of the Income Tax department. And the annual maximum depositing limit in a savings account is ₹10 lakhs.    

Savings Account Limits on Cash Withdrawal and Payment  

While the focus has been on deposits, it is equally crucial to be aware of savings account limits on cash withdrawal and payment. The savings account transaction limits on payments and withdrawals vary depending on the banks and the type of savings account you opt for. IndusInd Bank Savings Account offers higher withdrawal limits of up to ₹ 10 lakhs. Any amount higher requires you to provide a prior notice.  

The online payment limit varies depending on the debit card or the payment mode that you are using. For instance, IMPS is suitable for transactions up to ₹ 5 lakhs and RTGS is ideal for amounts only above ₹ 2 lakhs. NEFT does not have any upper limit, but it can take 2-4 hrs to clear payments during banking hours.   

ATM and POS transactions are subjected to predefined ceilings as well where you get a usage limit on a daily basis. For instance, with an IndusInd Bank debit card/ATM card, you can withdraw up to ₹ 1 lakh from an ATM and perform POS transactions of up to ₹ 2 lakhs depending on the card you own.    

These limits are designed with the customer’s safety in mind and to avoid any untoward incidents that may arise due to unauthorised access or cyber threats.  

Conclusion 

Understanding the cash deposit limits in a savings account is crucial for your financial literacy. Financial institutions, to safeguard financial integrity, impose these limits to foster transparency, stop illicit activities, and ensure the security of funds. IndusInd Bank strives to provide the best banking services with complete security to access your funds. You get a higher deposit and transaction limits to meet your financial requirements and grow your wealth with the industry’s best savings account interest rate. The best part is you can open your account from the comfort of your home with a 100% digital account opening process. Pick a customised account number, enjoy cashback and rewards on your debit card spends, and get complimentary insurance coverage. Open an IndusInd Bank Savings Account now!   

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.