The Reserve Bank of India (RBI) has increased ATM charges in India effective from January 1, 2022. Customers will now have to pay Rs 21 per transaction in addition to the monthly fee for ATM cards. However, the first five transactions from your bank’s ATMs are still free.
The RBI has also increased the number of free ATM transactions allowed at other banks’ ATMs. In metro cities, customers can now avail of three free transactions per month, up from two. In non-metro cities, the number of free transactions has been increased to five, up from three.
After exceeding the free transaction limit, customers will have to pay Rs 21 per transaction at ATMs of other banks. This is in addition to the GST applicable on the transaction amount.
Some Common Banks Charges
The following are the ATM charges of some of the major banks in India:
State Bank of India: 5 free ATM transactions per month, Rs 10 per transaction plus GST for additional transactions
Punjab National Bank: 5 free ATM transactions per month, Rs 10 plus GST for additional transactions at PNB ATMs, Rs 21 plus GST for additional transactions at other banks’ ATMs
HDFC Bank: 5 free ATM transactions per month, Rs 21 plus GST for additional transactions at other banks’ ATMs
ICICI Bank: 5 free ATM transactions per month, Rs 20 per transaction plus GST for additional transactions at other banks’ ATMs, Rs 8.50 for non-financial transactions
These are just some of the ATM charges in India. Please check with your bank for the specific charges applicable to your account.
The increase in ATM charges is likely to put a strain on the pockets of consumers, especially those who use ATMs frequently. However, the RBI has said that the increase in charges is necessary to meet the rising costs of ATM operations.
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If you are looking to save money on ATM charges, there are a few things you can do. First, try to use your bank’s ATMs as much as possible. Second, if you do need to use an ATM of another bank, try to do so in a non-metro city, where the number of free transactions is higher. Finally, you can also consider using a mobile wallet or prepaid card, which often offer free ATM withdrawals.