Know more about your ATM / Debit Cards

Receipt of Card and the PIN

It is common practice for banks to give savings bank accountholder an ATM or a Debit Card. A debit card can as well be called as an ATM cum debit card. However, after opening the account, you may have to wait for a few days to get your card in hand. In this connection, please note:

(a) The bank may send you the card and the PIN by separate couriers in a space of few days;

(b) The PIN is a four digit number which you have to use while operating the ATMs;

© You are advised to sign on the reverse side of the card, to prevent its misuse in case you lose it;

(d) Every card comes with an expiry date. Please note it and arrange to renew your card in time to avoid potential inconvenience and embarrassment.

Charges

Whether ATM or a Debit Card, the bank may levy two fold charges on you. First, the card issuance charges. Second, the yearly renewal charges. The quantum of charges varies across banks. However, some banks may exempt you from these charges depending on the average balance you maintain in your account. You need to check.

Differences between ATM and Debit Cards

The basic difference between ATM and Debit Card is that the former can be used only for operating ATM machines while the latter can be used in both ATM machines and also for making purchases in various shops and establishments including online purchases. Both these have a ceiling on the amount of cash that can be drawn in a day. The ceiling may differ across banks and this itself is a selling point for them. Between ATM and debit cards, the ceiling is usually higher in respect of the debit cards. Nowadays most banks issue debit cards instead of plain ATM cards.

Cash withdrawals using cards

(a) You can withdraw money from any ATM of your bank spread across the country up to the limit specified;

(b) You are also allowed to withdraw money from ATM of any other bank. You can do so five times in a calendar month free of any charge. Beyond that you would be levied with a fee for every additional transaction. (There are exceptions e.g., some banks offer unrestricted free of charge ATM access in select ATM networks to their valued customers;

(c) Few banks (like ICICI Bank, IDBI Bank etc) allow their customers to draw cash even from the POS (point of sales) terminals of their member establishments by using PIN based debit cards. The daily limit is Rs 1000.  The withdrawal is permitted whether or not the cardholder makes any purchases from the concerned shop / establishment;

The next post will deal with making purchases using cards issued by your bank.