The Reserve Bank of India has hiked the permissible charges beginning from January 1, 2022. And, if you go beyond the number of free ATM transactions allowed, you will need to pay an increased amount as fees because RBI has given permission to banks to raise charges for cash and non-cash ATM transactions.
As per the RBI notification, bank customers will need to shell out Rs 21/transaction effective from January 1, 2022 in case they go beyond the monthly limit of free transactions. Meanwhile, bank customers can make 5 free transactions that may include financial and non-financial transactions every month from their respective bank ATMs. It is worth noting that bank customers can also make 3 free transactions from other bank ATMs in metro and non-metro centres.
According to RBI's statement, "Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling / cap on customer charges is Rs 20 per transaction."
After RBI's decision, several banks opted to revise the charges for availing ATMs services. All banks have decided to impose limitations on using ATMs.
Let us check how many free cash withdrawals SBI, PNB, HDFC allow in 1 month and how much these banks charge after the free transaction limit gets over:
SBI ATM Charges
SBI provides 5 free transactions for bank customers maintaining a monthly balance of Rs 1 lakh at its ATMs located in regions like Mumbai, Kolkata, Delhi, Chennai, Bengaluru, and Hyderabad. The bank has capped the free transaction limit at 3 at other bank ATMs.
The bank charges Rs 5 to Rs 20 for transactions going beyond the free limit. It charges Rs 10 for withdrawing money from its ATM after the free limit gets over and charges Rs 20 for financial transactions from other ATMs after the free limit exceeds. The bank charges Rs 5 at SBI ATM, Rs 8 at non-SBI ATMs for non-financial transactions (such as checking bank balance).
It is important to note that if customers maintain a monthly balance of more than Rs 1 lakh, they can enjoy unlimited free transactions at SBI and other bank ATMs.
In case a customer has an inadequate balance in the account and transaction get declined due to this reason, the bank will charge Rs 20.
PNB ATM Charges
The bank offers 3 free ATM withdrawals in the metropolitan cities and 5 free ATM withdrawals in maximum other regions. After the limit gets over, PNB charges Rs 10 for using PNB ATM and Rs 20 while using other bank ATMs.
HDFC ATM Charges
The bank charges Rs 21 if customers withdraw cash from an ATM more than 5 times a month from an HDFC bank ATM and for using other bank's ATM more than 3 times.