Debit

Meaning:

A debit refers to an amount of money taken out or deducted from your bank account. It is recorded whenever you make a purchase, withdraw cash, or pay a bill.

Example:

For example, if you withdraw ₹1,500 from an ATM, that amount is recorded as a debit from your account.

How to understand debit:

Debits track the flow of money going out of your account, helping you manage your spending effectively. They ensure an accurate account balance by reducing the total available funds.

Uses of Debit:

ATM withdrawals where cash is taken from your account.

Purchases using a debit card in stores or online.

Bill payments, such as electricity, phone, rent, or auto debits for EMIs.  Money transfers to another person or account.

Subscription payments, where monthly charges are automatically deducted.