Generally, no, you cannot typically withdraw 10 lakh cash from a bank by cheque in a single transaction or on the same day due to daily cash withdrawal limits imposed by most banks.
Understanding Cash Withdrawal Limits by Cheque
Banks enforce daily cash withdrawal limits, especially for transactions made via cheque, primarily for security reasons and to comply with financial regulations. When using a cheque for self-withdrawal or a bearer cheque, most banks usually set a cash withdrawal limit of Rs 1-2 lakhs per day. This means that attempting to withdraw a sum as large as 10 lakh rupees (which is 1,000,000 INR) in cash using a cheque would significantly exceed these common daily thresholds.
The specific limits can vary between different banks and may also depend on the type of savings account you hold. Banks generally provide detailed information on their withdrawal limit conditions, associated fees, and charges when you open an account, whether through online or offline channels.
Why Are There Daily Cash Withdrawal Limits?
These limits are not arbitrary; they serve several important purposes:
- Security: They help protect customers from large fraudulent withdrawals, minimizing potential losses if a cheque is stolen or misused.
- Regulatory Compliance: Banks must adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations, which require close monitoring and reporting of large cash transactions to prevent illegal activities.
- Cash Management: Limits help banks manage their physical cash reserves across branches, ensuring sufficient liquidity for all customers' daily needs.
What Are Your Options for Large Financial Transactions?
If you need to move or utilize a substantial amount like 10 lakh rupees, direct cash withdrawal via cheque is generally not the feasible or recommended method. Instead, consider these more practical and secure approaches:
- Electronic Fund Transfers:
- NEFT (National Electronic Funds Transfer): Suitable for transferring funds between bank accounts, typically processed in batches. Limits can be high, often up to Rs 10-20 lakh per transaction for individuals in some banks.
- RTGS (Real Time Gross Settlement): Designed for large-value transactions, providing real-time settlement. The minimum amount for RTGS is Rs 2 lakh, and there is usually no upper limit for individual transactions.
- IMPS (Immediate Payment Service): Offers instant interbank electronic fund transfer 24/7. Limits generally range from Rs 2 lakh to Rs 5 lakh per transaction, depending on the bank.
- Demand Draft (DD) or Pay Order: You can request your bank to issue a demand draft or pay order, which is a secure payment instrument payable to a specific person or entity. This method avoids handling large amounts of physical cash.
- Banker's Cheque: Similar to a DD, a banker's cheque is guaranteed by the bank itself, making it a very secure form of payment for large sums.
- Prior Arrangement with the Bank: For exceptionally large legitimate cash requirements (e.g., for specific business payrolls), you might be able to make a special arrangement with your bank branch in advance. This would involve informing them several days prior so they can ensure the cash is available and complete any necessary compliance checks. However, this is for very specific circumstances and does not bypass regulatory scrutiny.
Typical Daily Cash Withdrawal Limits
Here's a general overview of common daily limits for cash withdrawals:
| Withdrawal Method | Typical Daily Limit | Notes |
|---|---|---|
| Cheque (Self/Bearer) | Rs 1-2 Lakhs (approx.) | Varies by bank and account type. For physical cash. |
| ATM Withdrawal | Rs 20,000 - Rs 1 Lakh | Varies significantly by bank, card type, and account. |
| Online Transfers | Much Higher (Rs 2 Lakh to No Limit) | NEFT, RTGS, IMPS for direct account transfers. |
Important Considerations
- Verify with Your Bank: Always confirm the exact cash withdrawal limits and policies with your specific bank, as they can differ.
- Regulatory Scrutiny: Large cash transactions (typically above Rs 50,000) are subject to scrutiny under tax laws and anti-money laundering regulations. Banks may require you to submit your PAN (Permanent Account Number) for transactions over a certain threshold, and authorities may request explanations for the source and purpose of such funds.
- Safety and Efficiency: For large payments, electronic transfers or bank-issued instruments like demand drafts are almost always safer, more efficient, and more trackable than physical cash.
