Deposit Limit : What is the Limit to Deposit Money in These Banks? Do you know your limit? – Comprehensive Guide 2024

Deposit Limit : Cash Deposit Machines (CDMs) have become an essential tool for banking customers, enabling the deposit of money without the need to visit a bank branch or even interact with a bank representative. CDMs, much like Automated Teller Machines (ATMs), allow individuals to perform banking transactions efficiently and independently. While ATMs are traditionally used to withdraw money using a debit card, CDMs provide the added functionality of depositing cash directly into a bank account, either one’s own or someone else’s, without stepping into a bank.

This system has gained prominence due to its convenience. It allows customers to deposit cash at any time of the day, bypassing the need for traditional banking hours. The advent of the CDM has transformed banking operations, especially in a country like India where a large percentage of transactions are still carried out in cash. This system allows for faster money transfers and helps to reduce footfall in physical bank branches, making banking more accessible to people across various regions.

The Role and Evolution of CDMs

In the past, CDMs were not as widely used as ATMs, particularly due to their relative novelty and the limited number of machines available in the country. However, the situation has changed significantly, with more people adopting this method for money transfers, especially individuals working in other states or regions who need to send money back home. This demographic, often made up of migrant workers, found CDMs particularly useful due to the convenience they offer in sending money without needing to visit a bank branch.

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Despite the growing use of CDMs, there remain certain challenges with the system. One such issue is the quality of the notes being deposited. CDMs often reject notes that are damaged, wrinkled, or broken, which can cause frustration for customers, especially those dealing with older or worn-out currency notes. Furthermore, the availability of CDMs is still somewhat limited compared to ATMs, meaning that not all customers may have access to a CDM in their local area. These limitations, while not insignificant, have not stopped the widespread adoption of CDMs by banking customers across the country.

Benefits of CDMs

One of the major advantages of using CDMs is the ability to transfer money to other accounts without visiting a bank. For many people, especially those who live in rural areas or are working long hours, visiting a bank during operating hours can be a challenge. CDMs, available 24/7, allow these individuals to deposit money at any time of the day or night, significantly improving access to banking services.

Furthermore, CDMs provide an easy way to deposit money into both personal and other individuals’ accounts without the need for a debit card. The cardless transaction feature allows individuals to deposit money using just the recipient’s account number, making the process much more accessible for those who do not have a debit card or prefer not to use one.

Transaction Limits and Policies for Different Banks

While CDMs have many advantages, they are not without their limitations. One of the primary constraints imposed by banks on CDM transactions is the limit on the amount of money that can be deposited per day. Different banks have set varying deposit limits, depending on whether the depositor is using a debit card or opting for a cardless transaction. Moreover, the linkage of a Permanent Account Number (PAN) card to the account can significantly influence the deposit limits.

Here is a look at the transaction limits imposed by various leading banks in India when depositing money via a CDM:

1. State Bank of India (SBI):

SBI, being the largest bank in India, has set the following limits for deposits through CDMs:

• Debit card or cardless transactions: A maximum of ₹49,900 can be deposited.
• PAN card linked accounts: Customers who have their PAN card linked to their account can deposit up to ₹2 lakh in a day.

This distinction between PAN-linked and non-PAN-linked accounts is a common practice among banks, allowing for greater flexibility for customers who have completed their KYC (Know Your Customer) formalities.

2. Bank of Baroda (BoB):

Bank of Baroda has set different limits based on whether the account is linked to a PAN card and whether the transaction is card-based or cardless:

• Debit card transactions (PAN linked): Customers can deposit up to ₹2 lakh per day if the account is registered with a PAN card.
• Debit card transactions (without PAN linkage): A limit of ₹49,999 is set for accounts not linked with a PAN card.
• Cardless transactions: If the transaction is cardless, the deposit limit is reduced to ₹20,000 per day.

This tiered system based on PAN linkage ensures that customers with verified KYC details can transact with higher limits, thereby ensuring greater transparency and security.

3. Punjab National Bank (PNB):

Punjab National Bank follows a similar pattern in setting transaction limits:

• Debit card transactions: Deposits of up to ₹1 lakh can be made using a debit card.
• Non-PAN-linked accounts: For accounts not linked to a PAN card, the maximum deposit limit is ₹49,900.

By setting these limits, PNB encourages its customers to link their PAN cards to their accounts for higher transaction capabilities.

4. HDFC Bank:

HDFC Bank, known for its comprehensive banking services, has a more complex structure for deposit limits depending on the type of account and transaction:

• Savings account (cardless transactions): The transaction limit is ₹25,000, while the daily deposit limit is ₹2 lakh.
• Current account (cardless transactions): The transaction limit is ₹1 lakh, and the daily deposit limit is ₹6 lakh.
• Debit card transactions: When using a debit card, the deposit limit is set at ₹1 lakh.

This distinction between savings and current accounts reflects the difference in banking needs between individual customers and businesses, with the latter often requiring higher transaction limits.

5. Union Bank of India:

Union Bank of India has set the following limits for CDM deposits:

• Cardless transactions: A maximum deposit of ₹49,900 can be made through CDMs.
• PAN card-linked accounts: For accounts linked with a PAN card, the deposit limit is ₹1 lakh.
• Note limitations: Only a maximum of 200 notes are accepted in a single transaction, which means that for large deposits, multiple transactions may be required if the notes are of smaller denominations.

Challenges and Limitations of CDM Transactions

While CDMs offer great convenience, they also come with certain limitations and challenges. One of the main issues that users face is the machine’s inability to accept damaged or wrinkled notes. This poses a significant problem in a cash-based economy like India, where the quality of circulated currency can sometimes be less than ideal. If a note is not in good condition, the machine may reject it, requiring the user to manually correct the issue by either smoothing out the note or exchanging it for a better-quality bill at a bank branch.

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Another challenge is the availability of CDMs. Although more banks are installing CDMs across the country, they are still less common than ATMs. In many rural areas, CDMs may be sparse or even non-existent, forcing customers to rely on traditional methods of depositing money. The limited availability of CDMs can cause inconvenience, especially in regions where bank branches are already few and far between.

Additionally, the deposit limits set by banks can be a challenge for some users, particularly businesses or individuals who deal with large sums of cash on a regular basis. While most banks allow for larger deposits if the account is linked to a PAN card, customers who have not completed this step are limited to smaller transactions, which may require multiple trips to the CDM or bank branch.

Conclusion

Cash Deposit Machines have revolutionized the way people deposit money in India, providing a quick, efficient, and cardless method for transferring funds. However, the system is not without its flaws. The rejection of damaged notes and limited availability of CDMs are two of the most significant challenges facing users today. Moreover, the deposit limits set by banks, while necessary for security and regulatory purposes, can sometimes be a hindrance to those who need to deposit large sums of money.

Nevertheless, CDMs continue to offer a level of convenience and flexibility that traditional bank branches cannot match. By allowing users to deposit money at any time of day, and often without the need for a debit card, CDMs are helping to bring banking services to more people across the country. As the system continues to evolve and expand, it is likely that we will see even more widespread adoption of CDMs, with improvements in machine capabilities and increased availability in rural areas.