The leading private and public sector banks all over India permit only a limited number of free transactions at their ATMs every month. Soon after the bank customers exhaust the free withdrawals limits allowed in these banks ATMs that may include financial and non-financial services, the banks will levy an additional charge.
According to latest RBI's guidelines issued in June 2021, banks can charge up to Rs 21 per transaction at the ATM above the monthly free transaction limit effective from January 1, 2022.
According to RBI's official website's FAQ section, "A bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:
Transactions at a bank's own ATM (On-Us transactions) at any location: Banks should offer their savings bank account holders a minimum of five free financial transactions in a month, irrespective of the location of ATMs. Any number of non-cash withdrawal transactions will be provided free."
"Transactions at any other banks' ATM (Off-Us transactions) at Metro locations: In case of ATMs located in six metro locations, viz. Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi, banks shall offer their savings bank account holders a minimum of three free transactions (including financial and non-financial transactions) in a month."
"Transactions at any other banks' ATM (Off-Us transactions) at non-Metro locations: At any location, other than the six metro locations as above, banks must offer its savings bank account holders a minimum of five free transactions (including financial and non-financial transactions) at other bank ATMs in a month."
It is worth mentioning that customers can be charged for transaction at ATMs over and above the mandated number of free transactions. Currently, these charges must not exceed a maximum of Rs 21/- per transaction (plus applicable taxes, if any) by his or her bank, as per RBI guidelines.
Let us check the top 2 banks ATM transaction limit and charges below:
ICICI Bank: The bank has allowed first 5 transactions including financial and non-financial that you will make at ICICI Bank ATM free. Once the limit is exhausted, you need to pay Rs 21 for financial transaction and Rs 8.50 for non-financial transactions.
Meanwhile, the first 3 transactions that may include financial and non-financial at non-ICICI Bank ATMs in the 6 metro cities (Bengaluru, Chennai, Kolkata, New Delhi, Mumbai, and Hyderabad) will be free every month. Customers can make first 5 transactions (financial and non-financial) in all other locations in a month free of cost at non-ICICI Bank ATMs.
Axis Bank: The bank permits first 5 transactions free and unlimited non-financial transactions if the customer is using Axis Bank ATM. Once the limit gets over, the bank will charge Rs 21 per transaction if it is Axis/Non-Axis ATM for cash withdrawal (financial transaction). For Axis/Non-Axis ATM, there is charge of Rs 10 per transaction for non-financial transaction beyond limits.
The first 3 transactions (financial, non-financial) are free in metro locations (Mumbai, Delhi0-NCR, Chennai, Kolkata, Bangalore, and Hyderabad and first 5 transactions (financial and non-financial) are free in all other locations when it comes to Non-Axis Bank ATM.