Limit - what is it? And how often do you come across this concept? In various literature, this word has one designation - the limit. This term is popular in the financial, scientific and gambling spheres. However, today the word is most often used in banks. What the limit implies and who sets it, we consider below.
Bank limit
As already mentioned, in all areas the word "limit" has one designation - the limit. For banking operations, this term is used when setting any restrictions on monetary transactions. Sometimes the inability to withdraw a certain amount of money leads to great difficulties and a deterioration in the reputation of the bank. Each lender has the right to set their own limits for withdrawing funds no higher than the norm of the law.
Limit - what is it and why should a bank set it? The answer to this question lies on the surface. Establishing restrictions on the withdrawal of certain amounts serves to preserve funds and prevent fraud. So, today there are restrictions on cash desks, on ATMs, on card and credit accounts.
The maximum withdrawal amount is equal to the amount of funds that the client is able to return. In working with accounts, the cash limit serves to ensure non-cash circulation.
Credit limit
Often in the terminology of bankers you can hear unfamiliar concepts. The limit - what is it and how does it affect the withdrawal of a client’s credit funds, must be interpreted upon receipt of a credit card. A similar restriction is imposed on the amount that, based on the borrower's income, can be issued to him.
The credit limit is set on an individual basis and may depend on many factors. These factors include: borrower income, contract term, bank credit policy and other factors. After some time, the bank may propose increasing the maximum amount for use. In this case, the calculation of the limit is based on how and by what amounts the borrower repaid the debt.
Card Limit
Limit - what is it and how it is displayed on the map, it is worthwhile to understand in more detail. There are several types of such restrictions:
Limit the issuance of funds at an ATM.
Daily cash withdrawal limit.
Restriction on Internet operations.
Limit the issuance of funds at the checkout
So, the established limit on the issuance and settlement of funds from the account is the card limit. Such requirements are related to the order of the Central Bank. So, today the maximum cash withdrawal amount in ATMs for Visa Electron and MasterCard cards is 100-150 thousand rubles, for standard cards - 300 thousand rubles, for Gold cards - 500 thousand rubles.
Maximum and minimum thresholds are set by the Central Bank, however, banks are entitled to set their limits if they do not exceed legislative norms. For example, the withdrawal limit at the institution where the client is served may be one, but for a third-party ATM, it is much less.
In order to withdraw the amount over the established limit, the client must contact the bank hotline or directly to the office. Bank employees, at their discretion, may decide in favor of the client and vice versa.