The Reserve Bank of India (RBI) has recently allowed the banks to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit. Bank customers will have to pay ₹21 per transaction, instead of ₹20, with effect from January 1, 2022, if they exceed the monthly limit of free transactions.
At present, most of the private and public banks in India allow five free ATM transactions (inclusive of financial and non-financial transactions) in urban cities and towns from their own bank ATMs. In rural areas, however, banks allow up to five free ATM transactions. If you exhaust the monthly limit, then the bank charges you a small amount of money to keep ATMs functional.
Also, effective August 1, 2021, banks are allowed to increase interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres, the RBI circular said.
However, some private banks are offering unlimited free ATM transactions to their customers. These banks are IndusInd Bank and IDBI Bank.
“IDBI Bank offers free ATM transactions in consonance with the RBI Prescribed minimum free limits. Accordingly, the Bank offers 5 free transactions at its own ATMs. In other Bank ATMs, the Bank offers 3 transactions free at 6 metro locations and 5 transactions free at other locations. The Bank however offers unlimited free ATM transactions in few select product variants as per the product design,” said Jorty Chacko, Executive Director of IDBI Bank.
IndusInd Bank offers unlimited free ATM transactions at any bank ATM in India. “Unlimited Free ATM Withdrawal with your IndusInd Bank Debit Card across any ATM in India,” mentions the bank’s website.
According to the BankBazaar website, “Citi Bank still offers unlimited free transactions.”
Meanwhile, the country’s top lender State Bank of India (SBI) allows its customers who maintain an average balance of more than ₹25,000 in their savings accounts unlimited transactions at State Bank Group (SBG) ATMs. Those maintaining an average balance of more than ₹1,00,000 in their savings accounts will also be eligible for unlimited transactions at SBG ATMs as well as other banks ATMs. SBI had revised its ATM withdrawal rules on 1 July 2020.
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