Current Account Limit: Cash Deposit, Withdrawal, and Charges per Day or Year
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19 DECEMBER, 2023

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. 

Current Account Cash Withdrawal Limit

Knowing the cash withdrawal limits for your Current Account requires understanding the specific ranges for different account types.

  • Neo Current Account -Free cash withdrawals at non-home branches, up to Rs 10,000 daily.
  • Startup Premium Current Account -Free cash withdrawals at non-home branches, up to Rs 1 Lakh daily.
  • Startup Regular Current Account - Free cash withdrawals at non-home branches, with a daily limit of up to Rs 50,000.
  • Pro Current Account - Free cash withdrawals at non-home branches, up to Rs 50,000 daily.
  • Astra 05 Current Account - Free cash withdrawals at non-home branches, with a daily limit of Rs 5 Lakh.
  • Astra 15 Current Account -Free cash withdrawals at non-home branches, with a daily limit of up to Rs 7.5 Lakh.
  • Merchant One Current Account - Free cash withdrawals at non-home branch locations, up to Rs 50,000 daily.
  • Merchant One Premium Current Account - Free cash withdrawals at non-home branch locations, with a daily limit of up to Rs 1 Lakh.
  • Edge Current Account - Free cash withdrawals at non-home branches, with a daily limit of Rs 25,000.
  • Ace Current Account - Free cash withdrawals at non-home branches, with a daily limit of Rs 2.5 Lakh.
  • Elite Current Account - Free cash withdrawals at non-home branches, up to Rs 1 Lakh daily.

To manage these limits effectively, consider using digital payment methods, online fund transfers, and ATMs within the specified limits.

Current Account Cash Deposit Limit 

Understanding cash deposit limits is vital for effective financial planning. The yearly deposit limits vary across account types and are crucial in shaping your financial landscape.

  • Neo Current Account -Monthly allowance of free cash deposits up to Rs 2 Lakh.
  • Startup Premium Current Account - Free cash deposits at home branches, up to 5 times the previous month's average credit balance or Rs 10 Lakh, whichever is higher.
  • Startup Regular Current Account - Free cash deposits at home branches, up to 5 times the previous month's average credit balance or Rs 5 Lakh, whichever is higher.
  • Pro Current Account - Free monthly cash deposits up to Rs 6 Lakh.
  • Astra 05 Current Account - Free cash deposits up to 10 times the previous month's average credit balance or Rs 60 Lakh, with standard charges applying after that at Kotak Branch locations.
  • Astra 15 Current Account - Free cash deposits up to 12 times the previous month's average credit balance or Rs 120 Lakh, with standard charges applying after that at Kotak Branch locations.
  • Merchant One Current Account - Free monthly cash deposits up to Rs 6 Lakh.
  • Merchant One Premium Current Account - Free monthly cash deposits up to Rs 10 Lakh.
  • Edge Current Account -Free monthly cash deposits up to Rs 4 Lakh.
  • Ace Current Account -Free cash deposits up to 10 times the previous month's average credit balance or Rs 25 Lakh, with standard charges applying after that at Kotak Branch.
  • Elite Current Account - Free monthly cash deposits up to Rs 10 Lakh.

To stay within these limits, consider using digital banking platforms, online fund transfers, and visiting the physical branches in a timely manner. Aligning deposit strategies with the prescribed limits ensures optimal financial management and compliance with the account's unique parameters.

Consequences of Exceeding the Limit

Understanding the consequences of surpassing your cash deposit limit is essential. 

  • Fees and Penalties:If your transactions exceed the allotted free limit, you might incur a nominal charge per transaction.

Being aware of these limits ensures a smooth banking experience, avoiding unnecessary fees and maintaining the integrity of your Current Account.

Frequent cash deposits might incur service charges beyond a predetermined limit, whether at home or non-home branches. Even with the convenience of cash deposit machines in various branches, it's essential to be aware of potential charges. 

Remember that the above features for most bank accounts may be free per month up to a specific limit, after which charges are levied on exceeding the set limit. Even in the case of non-maintenance of the Current Account minimum balance, few premium accounts may waive the penalty for the first year only.

Read also: How to cancel a cheque

Frequently Asked Questions

1.) Does the cash deposit limit differ for various types of Current Accounts?

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.

2.) What happens if I exceed the cash deposit limit in my Current Account?

Exceeding the cash deposit limit may result in additional charges or fees. Banks usually levy charges when the prescribed deposit limits are surpassed.

3.) Are additional charges associated with a Current Account besides transaction limits?

Yes, besides transaction limits, Current Accounts may have charges for non-maintenance of minimum balance and other services. 

4.) Can I request an increase in my Current Account's cash deposit limit?

You can choose a current account of a higher variant in order to get higher cash deposit limits. Contact Kotak Mahindra Bank for specific details.

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.

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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.