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Current Account Limits: Cash Deposits and Withdrawals
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Yes, cash deposit limits can vary based on the type of Current Account. Different account variants may offer distinct limits tailored to their specific features and requirements.
Exceeding the cash deposit limit may result in additional charges or fees. Banks usually levy charges when the prescribed deposit limits are surpassed.
Yes, besides transaction limits, Current Accounts may have charges for non-maintenance of minimum balance and other services.
You can choose a current account of a higher variant to get higher cash deposit limits. Contact Kotak Mahindra Bank for specific details.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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A Current Account holds a central role in handling business transactions financially. It's important to understand the cash deposit limit in a Current Account as per Income Tax regulations, which sets the maximum amount allowed for deposits. This limit, influenced by different factors, significantly impacts financial operations.
Understanding Your Current Account Limits
Effectively managing your Current Account is crucial for compliance. The cash deposit limit is the maximum amount you can deposit in physical currency within a timeframe, directly affecting account functionality. Cash withdrawal limits are the maximum amounts of money an account holder can take out from their account on any day.
Manage transactions by planning according to these limits, considering alternatives for large deposits, and leveraging online methods. Regularly review statements for accuracy and unauthorised transactions. Adhering to these points ensures a secure and compliant financial environment.
Types of Current Accounts & Their Cash Deposit Limits
Different types of current accounts cater to varying business needs, each with its cash deposit limits. Here’s a brief overview:
Normal Current Account
This is a standard account for everyday business transactions. Cash deposit limits vary by bank, usually ranging from ₹50,000 to ₹1,00,000 per day.
Zero Balance Current Account
Ideal for startups and small businesses, this account doesn’t require a minimum balance. However, cash deposit limits may be lower, often around ₹10,000 to ₹50,000 per day, depending on the bank’s policy.
Current Account for Trusts
Designed for charitable or NGOs, these accounts often have higher deposit limits, accommodating more significant inflows, which could be up to ₹1,00,000 or more per day.
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Current Account for Jewellers
Tailored for businesses in the jewellery sector, these accounts generally allow higher cash deposits due to the nature of the business. Limits can exceed ₹1,00,000 per day.
Current Account for Private and Public Sector Businesses
These accounts, depending on the size of the business, can have high cash deposit limits, often upwards of ₹1,00,000 per day, to match the scale of operations.
Current Account for Global Businesses
These accounts are designed to handle large volumes of cash deposits for international trade and operations, usually with higher limits or flexible terms based on the business's global needs.
Each type of account serves specific purposes and comes with varying cash deposit limits to meet the needs of different business sectors.
Charges for Current Account Cash Deposit Processing
Understanding the current account cash deposit processing charges is essential for effective financial management. Here’s what you need to know:
Processing Fees
In India, current accounts in banks often impose fees for cash deposits that exceed a specified limit.
Transaction Limits
These are the additional charges that may apply if you surpass the free deposit limit set by your bank.
Monthly Charges
Now, some current accounts may incur monthly charges depending on the volume of cash deposits.
Service Charges
Service charges include frequent or high-value deposits that may attract extra fees.
Consequences of Exceeding the Limit
Understanding the consequences of surpassing your cash deposit limit in a Current Account is essential for managing your finances effectively. Here’s what you need to know:
Fees and Penalties
You may incur nominal charges per transaction if your cash deposits exceed the allotted free limit. These fees are applied to transactions beyond your set limit.
Service Charge
Frequent deposits surpassing the current account limit could incur additional service charges. These charges may apply when depositing cash at non-home branches or using cash deposit machines.
Monthly Limits
Banks usually set a monthly cash deposit limit in Current Accounts. Deposits exceeding this limit will attract fees, which vary depending on the bank’s policies.
Account Maintenance
Some premium accounts might waive penalties for not maintaining the minimum balance for the first year. However, exceeding the cash deposit limit could still lead to charges.
Awareness of these aspects helps avoid unnecessary fees and ensures a smooth banking experience.
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