What are the Transaction Limits on an Online Current Account?

Posted on Wednesday, April 17th, 2024 | By IndusInd Bank

Current accounts are essential for bank account holders and businesses as they offer different transactional and financial facilities. However, you must understand the current account transaction limit and restrictions before signing up for one. A limit on current accounts maintains the overall stability of the banking system, prevents fraud, and ensures security. This blog will also give you tips on reaching your financial needs effectively by overcoming these limits.

What are Current Account Transaction Restrictions?

A current account daily transaction limit is the banking policy that restricts the number of times you can use a current account or the maximum sum you can transfer. These limits depend on factors like the type of current account, the bank, and the account holder’s relationship with it. For example, the current account transaction limit for IndusInd Bank Indus Grandé Business Account is ₹75 lacs or 12 times the last month’s maintained AMB, i.e. average monthly balance, whichever is higher. Common examples of current account transaction limits are daily or monthly restrictions on withdrawals and limits on money transfers, deposits, and purchases. You must be aware of these limits when you open a current account to ensure your banking experience is smooth and hassle-free.

Why are Transaction Limits on Current Accounts Significant?

Transaction limits for current accounts safeguard your funds against fraudulent transactions and access. These restrictions are a security measure if hackers try to breach your current account. Apart from security, they also help banks mitigate excessive withdrawals or transfer risks and manage liquidity. Banks can better track and control the cash flow, ensuring the overall banking system remains stable.

What are the Different Types of Current Account Transaction Limits?

Before you open a current account online, you should be aware of the different types of limits that banks place on the accounts. These restrictions are:

A.  Daily Withdrawal Limits:

A bank will set the maximum amount you can withdraw from your current account daily. The withdrawal limit is based on the type of current account and will differ from bank to bank. You must know your current account’s daily withdrawal limit to access your funds smoothly.

B.  Purchase Limits:

Some current accounts may limit spending amounts through online transactions or debit cards. These limits prevent fraudulent purchases and excessive spending. Understand your purchase limits to circumvent declined transactions.

C.  Transfer Limits:

These restrictions specify the maximum amount transferrable from one account to another. They offer you control over your funds and avert unverified money transfers. Be conscious of these limits when you are transferring a large sum.

D.  Cash Deposit Limits:

Banks may set cash deposit limits to deter unlawful activities like money laundering. They limit the maximum amount you can deposit in a current account within a particular time. Ensure that you are compliant with banking regulations if you regularly use cash.

Also Read: All about Current Accounts—Types, Features, Eligibility, and More

How to Manage Transaction Limits?

Once you are familiar with the different types of restrictions on current accounts, you can overcome them by following a few of these steps:

• Familiarising yourself with the terms and conditions is vital for managing current account transaction limits. Learn the different types of transaction limits that your bank imposes on current accounts. You will find this information on the bank website or account agreement.
• When a current account transaction exceeds the limits, contact your bank beforehand. The bank may temporarily increase your limits after checking your account history.
• Regularly tracking your account transactions will ensure you stay within the fixed restrictions. It also helps you promptly identify any discrepancies.

Additionally, also consider planning your transactions and exploring different banking products.

You should understand and manage the current account’s transaction limits to maintain financial security and enjoy a smooth banking experience. You can enjoy a healthy business relationship with your bank by adhering to restrictions.

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.