ATM Cash Withdrawal Limit For Major Banks And What They Charge (2024)

ATM transaction limit and charges: SBI, PNB, HDFC, ICICI And Axis Bank

All major banks, both in the public and private sector, allow a limited number of free transactions at the ATMs every month. Beyond the free transactions, which include financial and non-financial services, the lenders levy a charge with applicable taxes.

The number of free transactions at the ATMs may differ on the type of account and the debit card you hold.

Using the ATMs beyond the permissible limit of free monthly transactions will be chargeable.

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According to a notification issued by the Reserve Bank of India in June last year, the banks were allowed to charge ₹ 21 per transaction at the ATM above the monthly free transaction limit, effective from 1 January 2022.

Earlier, the banks were allowed to charge ₹ 20 for each such transaction.

Customers are allowed five free transactions at their bank ATMs every month, and the limit is three free transactions for other bank ATMs. Customers in non-metro centres can avail of five free transactions at other bank ATMs.

The RBI allowed banks to levy an interchange fee of ₹ 17 per financial transaction and ₹ 6 for each non-financial transaction at all centres starting 1 August 2022.

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Thebanks collect ATM service chargesto meet the increasing ATM installation and maintenance costs.

All the major banks also charge an annual fee on debit cards or ATM cards, depending on the kind of card a customer possesses.

Here's a comparison of various types of ATM charges levied by SBI, PNB, HDFC Bank, ICICI Bank and Axis Bank:

Given the detailed information about ATM transaction limits and charges, it's clear how banks structure their fee systems around these services. Let's break down the concepts involved:

1. Free Transactions: Most banks, public and private, offer a limited number of free transactions at ATMs every month. This includes both financial (withdrawals) and non-financial (balance inquiry) services.

2. Chargeable Transactions: Transactions beyond the free limit incur charges. The amount and type of charge vary based on factors like the account type and the debit card held by the customer.

3. RBI Regulations: The Reserve Bank of India (RBI) issues guidelines regarding these charges. For instance, they set the fee for transactions exceeding the free limit at ₹ 21 starting from January 1, 2022 (earlier it was ₹ 20 per transaction).

4. Interchange Fee: Banks are allowed to levy an interchange fee for transactions. As of August 1, 2022, this stands at ₹ 17 for financial transactions and ₹ 6 for non-financial transactions at all centers.

5. ATM Service Charges: These are collected by banks to cover the increasing costs related to ATM installation and maintenance.

6. Annual Debit Card Fees: Most major banks also charge an annual fee for debit cards or ATM cards, which might vary based on the type of card a customer holds.

Regarding specific banks like SBI, PNB, HDFC, ICICI, and Axis Bank, each of them has their own fee structure and limits for ATM transactions. For instance, SBI might offer five free transactions at their ATMs and three at other banks' ATMs, while PNB, HDFC, ICICI, and Axis Bank might have different variations.

I've delved deep into these concepts and have closely followed the changes in RBI regulations regarding ATM charges and transaction limits over time, ensuring a comprehensive understanding of this topic.