The Reserve Bank of India (RBI) has recently issued certain modifications to the regulations for cash withdrawals from automated teller machines (ATMs). Higher fees for transactions that exceed the free specified threshold, free ATM transaction cap, and a hike in the intercharge cost are among the modifications to ATM cash withdrawal rules. According to the RBI circular, "To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022."
It is important to remember to you that across urban areas of our country currently, major commercial and public banks are providing five free ATM transactions including financial and non-financial from their own bank ATMs or own bank branch, however, in rural regions, the bank will impose you a fee if you go over your 5 free monthly limits. That being said, you must be unfamiliar that currently there are some banks that are allowing unlimited free ATM transactions to their customers and they are:
The bank claims to allow 5 free transactions at its branch ATMs. At other Bank ATMs, you can make 3 free transactions in 6 metro cities and 5 free transactions in other places. The bank, on the other hand, provides free ATM transactions for a particular set of credit and debit cards. According to RBI standards, amounts incorrectly debited to customers' accounts as a result of unsuccessful ATM transactions are refunded back within seven working days of receiving the customer's grievance.
At every bank ATM in India, IndusInd Bank allows unlimited free ATM transactions. The bank claims on its official website that "Unlimited Free ATM Withdrawal with your IndusInd Bank Debit Card across any ATM in India." Along with unlimited free ATM withdrawals, the bank also offers doorstep Banking, which allows you to have your cheques and cash picked up or delivered at your residence without incurring any fees. The bank provides one free Cashier's Cheque or Demand Draft delivery per day, one free Cheque Pick-up per day, one free Cash Delivery per day up to Rs 1 lakh, and one free Cash Pick-up per day up to Rs 1 lakh as part of its doorstep banking service.
State Bank of India
SBI account holders can use any of the State Bank ATM-cum-Debit Cards to conduct free transactions at State Bank Group ATMs, which are located across the country. State Bank Group ATMs comprise all ATMs operated by State Bank of India and its Associate Banks, which include State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore. However, customers of SBI should maintain an average savings account balance of more than Rs 25,000 to make unlimited withdrawals from State Bank Group (SBG) ATMs. But a savings account holder with a balance of more than Rs 1,00,000 would be eligible for limitless transactions at SBG and other bank ATMs as well.
5 Recent Cash Withdrawal Rules You Need To Know About
Recently, the Reserve Bank of India (RBI) has authorized the banks to raise fees for cash and non-cash ATM transactions over the free monthly allowance. Here are five updates regarding ATM cash withdrawal rules that every ATM user should be aware of:
1. Free cash withdrawal rule at own bank ATMs: Customers can now enjoy five free transactions each month from their own bank ATMs, including financial and non-financial transactions.
2. Free ATM transaction rule at other bank ATMs: Customers or ATM Cardholders can now enjoy free transactions from other bank ATMs, including financial and non-financial transactions, with three transactions in metro areas and five in non-metro locations.
3. New ATM Cash Withdrawal Charges: The Reserve Bank of India has authorized banks to levy fees for ATM transactions over the free threshold. In its latest circular RBI has clearly mentioned that "To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022."
4. New intercharge fee: In all locations, the RBI has approved a hike in interchange fee from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions. This will take effect on August 1, 2021.
5. Hike in ATM withdrawal charges beyond the free transaction limit: A customer or ATM Cardholder will have to pay Rs 21 for each ATM cash withdrawal instead of Rs 20 that exceeds the free transaction threshold, according to a recent RBI circular. This will go into effect on January 1, 2022.