Limit - what is and how to calculate
Limit - what is it? And how often do you come across this notion? In different literature this word has one designation - the limit. This term is popular in financial, scientific and gambling spheres. However, today this word is most often used in banks. What does the limit mean and who sets it down will be discussed below.
Banking limit
As already mentioned, in all areas of 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 remove a certain amount of money leads to great difficulties and the deterioration of the bank's reputation. Each creditor has the right to establish its own limits on withdrawals not exceeding the norm of the legislation.
Limit - what is it and why should the bank install it? The answer to this question lies on the surface. The establishment of a restriction on the withdrawal of certain amounts serves to preserve funds and prevent fraud. So, today there are restrictions on cash desks, ATMs, 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 transactions.
Credit limit
Often in the terminology of bankers can be heardunfamiliar concepts. The limit - what is it and how it affects the withdrawal of the client's credit funds, are required to be explained when the credit card is received. 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 in individualorder and can depend on many factors. Such factors include: the borrower's income, the term of the contract, the bank's credit policy and other factors. After some time, the bank can offer to increase the maximum amount for use. In this case, the calculation of the limit is based on how and how much the borrower repaid the debt.
Card limit
Limit - what is it and how it is displayed on the map, it is worth investigating in more detail. There are several types of such restrictions:
Restriction of the issuance of funds in the ATM.
Daily limit on cash withdrawal.
Restriction on Internet operations.
Restriction of the issuance of funds in the box office.
So, the established restriction on the issuance andthe calculation of funds from the account is a card limit. Such requirements are related to the order of the Central Bank. So, for today the maximum amount of cash withdrawal in ATMs for Visa Electron and MasterCard series cards is 100-150 thousand rubles, for standard cards - 300 thousand rubles, for cards of the Gold series - 500 thousand rubles.
The maximum and minimum thresholds are setThe central bank, however, banks have the right to set their limits, if they do not exceed the legislative norms. For example, the withdrawal limit in the institution where the client is serviced can be one, and for a foreign ATM - much less.
In order to withdraw the amount over the establishedlimit the customer must apply to the hotline of the bank or directly to the office. Employees of the bank at their own discretion can decide in favor of the client and vice versa.
