Cash withdrawal/ deposit in India               Home          Banks in India


Due to low income levels and literacy rates, most economic transactions in India involve cash payments. Most traders and merchants periodically deposit their cash collections in banks. Employees of  larger companies receive payment by cheque or the amount is directly credited to the salary account.

Most of the private sector banks in metropolitan cities like Mumbai have Automatic Teller Machines (ATMs) where you can withdraw money from your account. One ATM is usually located just outside each branch. Private sector banks sometimes insist that customers withdraw money from ATMs, to reduce the workload on the teller.  However, on extended weekends, the ATMs do not have sufficient cash. Also, most banks limit the amount that can be withdrawn from an ATM at one time, to reduce losses in case of fraud.

Sometimes, ATM cards are lost when the card is not ejected from ATM , after the transaction is completed. In such cases, the card should be blocked immediately by calling the banks customer care number.  The card can be retrieved when the ATM is opened. Since the cash in the ATM is replaced every day, this will take about 24 hours.


The conventional method for withdrawal of money in banks is through a cheque or withdrawal slip. Some banks like Canara Bank insist on a cheque for withdrawal of any amount - big or small. Bharat Co-op Bank (Mumbai) allows cash withdrawal for amounts upto Rs 10000 through a withdrawal slip. For larger amounts, they prefer a cheque. If authorised by manager, they allow withdrawal through a withdrawal slip. After the withdrawal form is submitted, a token is given. This token has to be presented to the teller to withdraw cash. It is advisable to count the cash at the counter itself. If the notes are damaged you can return it immediately. Sometimes the sealed bundles from Co-operative Banks do not contain all the 100 notes. Some banks now have currency counting machines but disposing damaged notes is still a problem.


The number of bank holidays in Maharashtra is very high compared to other states in India. The time taken to withdraw money just before or after the holidays is very high. The time taken is also high on Mondays and in the first week of  a month , when salaried people withdraw money. For withdrawals of large amounts (Rs 50000 or more), the bank manager has to be informed in advance, so that suitable arrangements can be made for cash. Sometimes, before major holidays like Diwali, some banks make extra provisions for cash withdrawal.


ICICI bank allows cash deposits anywhere in India for roaming current accounts. Earlier the amount was directly credited to the account, now the amount is credited after 3-4 hours.


For current accounts,  withdrawals of  amounts more than Rs 25000 on one day attract a cash withdrawal tax of 0.1% and for corporates, the withdrawal limit is Rs 100000. This is also monitored by the Income Tax department.


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