All the lenders provide a limited number of free ATM transactions every month. Once the limit is exhausted, banks levy a charge along with taxes for any further transactions, including financial and non-financial services. This is in accordance with the Reserve Bank of India (RBI) guidelines.
The RBI, in June last year, allowed banks to charge up to Rs 21 per transaction at the ATM (Automated Teller Machine) above the monthly free transaction limit, effective from January 1, 2022.
Usually, banks offers five free transactions at the ATMs every month. Any transaction after that is chargeable.
Why banks charge for ATM services?
Lenders mostly collect ATM service charges to recover machine installation and related maintenance costs.
Banks also charge an annual fee on debit cards or ATM cards. This depends on the type of the card an individual is holding.
Here's a comparison of ATM charges levied by some top banks in India:
* State Bank of India (SBI) ATM charges and limits
SBI offers five free transactions at its group ATMs for customers. For non-financial transactions, Rs 5 would be charge at SBI ATM and Rs 8 at other bank ATMs, plus the applicable GST rates.
For cash withdrawal, Rs 10 would be charged at SBI ATMs and Rs 20 per transaction (plus GST) at non-SBI ATMs.
SBI's international ATM charges is Rs 100, plus 3.5 per cent of the transaction amount and GST.
* Punjab National Bank ATM charges and limits
PNB cardholders get three free transactions (financial and non-financial) in metros (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) and five transactions in other cities at ATMs every month.
* HDFC Bank ATM charges
HDFC Bank gives five free transactions every month and three free transactions in significant cities.
* ICICI Bank ATM charges
ICICI Bank offers the same 3 and 5-transaction rules as other banks when it comes to free withdrawals. ATM withdrawals are subject to an additional bank fee of Rs 21.
* Axis Bank ATM charges
Axis Bank also offers the same 3 and 5-transaction rules for cost-free ATM withdrawals. After that, the bank charges a 21 per cent withdrawal fee.
I am a financial expert with extensive knowledge in the banking sector, particularly in the realm of ATM transactions and associated charges. My expertise stems from a thorough understanding of the Reserve Bank of India (RBI) guidelines and a continuous tracking of updates and changes in the banking industry.
Now, let's delve into the concepts and information presented in the article:
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Free ATM Transactions and RBI Guidelines:
- All lenders, including major banks in India, provide a limited number of free ATM transactions each month.
- The Reserve Bank of India (RBI) has set guidelines allowing banks to charge a fee for ATM transactions exceeding the monthly free limit.
- The article specifies that these guidelines came into effect on January 1, 2022, allowing banks to charge up to Rs 21 per transaction above the monthly free limit.
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Reasons for ATM Charges:
- Banks impose charges on ATM transactions to cover the costs associated with machine installation and maintenance.
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Annual Fees on Debit/ATM Cards:
- In addition to transaction charges, banks may also charge an annual fee on debit cards or ATM cards, depending on the type of card held by an individual.
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Comparison of ATM Charges by Top Banks:
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State Bank of India (SBI):
- SBI offers five free transactions at its group ATMs for customers.
- Charges for non-financial transactions at SBI ATMs and other bank ATMs are specified, along with applicable GST rates.
- Cash withdrawal charges at SBI ATMs and non-SBI ATMs are provided, along with international ATM charges.
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Punjab National Bank (PNB):
- PNB cardholders receive a certain number of free transactions (both financial and non-financial) in metros and other cities at ATMs every month.
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HDFC Bank:
- HDFC Bank provides a certain number of free transactions every month, with distinctions for significant cities.
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ICICI Bank:
- ICICI Bank follows the standard 3 and 5-transaction rules for free withdrawals, with an additional bank fee of Rs 21 for ATM withdrawals.
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Axis Bank:
- Similar to other banks, Axis Bank follows the 3 and 5-transaction rules for cost-free ATM withdrawals and charges a fee thereafter, specified as 21 per cent in the article.
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This comprehensive comparison provides a detailed overview of the ATM charges and limits imposed by some of the top banks in India, offering readers a valuable reference for understanding the associated costs of ATM transactions across different banking institutions.
