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All You Need to Know about New ATM Transaction Charges

According to the change in regulations from the Reserve Bank of India, customers are now entitled to 3 free ATM transactions each month instead of 5 transactions. The rule is applicable for customers in Bengaluru, Mumbai, Chennai, Kolkata, Delhi, and Hyderabad. It is to be kept in mind that transactions include both financial and non-financial transactions at ATMs.  The maximum fee which can be charged is Rs.20.
  • Citi Bank still offers unlimited free transactions 
  • IDBI Bank offers free unlimited transactions at own ATMs and 5 free transactions at other ATMs. 
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    The Reserve Bank of India rolled out a policy in August 2014, pertaining to the amount and the number of ATM transactions offered by banks for free of charge. According to this policy, banks were instructed to provide a certain number of transactions free of cost to customers every month. As per the change in the policy, customers would be eligible for 3 free transactions instead of the earlier 5 free transactions by debit card. This rule is applicable in 6 metro cities, namely Mumbai, Delhi, Bangalore, Chennai, Kolkata, and Hyderabad. Not to forget, free transactions consist of both financial and non-financial transactions. Non-financial transactions include services such as balance enquiry, changing the ATM pin, mini statement, and booking a Fixed Deposit. Cash payment, cash withdrawal and the like will come under financial transactions. The policy also stated that once the number of free transactions has been utilised by the customer, a nominal fee will be charged per transaction which will be decided by the bank. The maximum fee that can be charged per transaction is Rs.20.

    As the effect of demonetisation is still experienced by many citizens, they assumed that the government will instruct the banks to not charge fees on ATM transactions till the situation returns to normal. People were expecting a waiver even after Dec 31st, 2016. But the Reserve Bank of India remained silent on the issue and banks started to charge for all ATM transactions after the free limit. However, few public sector banks like Bank of India is not charging for ATM transactions till March 31st of 2017. The RBI has also declared that from 1st January, 2017, Merchant Discount Rate on transactions will be capped at 0.5% for transactions up to Rs.1,000 and 0.25% for transactions more than Rs.1,000 but less than Rs.2,000.

    Learn more about New ATM Transaction Charges, Debit Cards for EMI

    Revised Charges for ATM Transactions

    Post demonetisation, the daily withdrawal amount has been increased from Rs.4,500 to Rs.10,000 since 16th January 2017. Refer to the table below for the existing number of free transactions and the fees involved for transactions beyond the free limit.

    Name of Bank Free transactions allowed (each month) Fees for Transactions Beyond Free Limit
    Own Bank ATM Other Bank ATM Financial Non-Financial
    Axis Bank 5 3 Rs. 20+ GST Rs. 9.55
    ICICI Bank 5 3 Rs. 20+ GST Rs.8.50 + GST
    IDBI Bank Unlimited 5 Rs.20 Rs.8
    Citi Bank Unlimited Unlimited
    Bank of Baroda Unlimited Depends on the policies of those banks Rs.20 + GST Rs.10 + GST
    HDFC Bank 5 3 Rs.20 + GST Rs.8.50 + GST
    State Bank of India Unlimited (for salary accounts) Unlimited (for salary accounts) - -
    Kotak Unlimited 5 Rs.20 + GST Rs.8.50 + GST
    Canara Bank Unlimited 5 Rs.20 + GST Rs.10 + GST
    Punjab National Bank Unlimited 5 Rs.20 Rs.20

    Note:

    • The free transaction limit of 3 transactions is only applicable to Metro cities (Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai). For all other locations, the limit is 5.
    • The free transaction limit is not applicable to no-frills or small savings accounts.
    • Banks can choose to offer a higher number of free transactions if they wish to.

    Terms and Conditions:

    • IDBI Bank account holders can make unlimited transactions at their bank ATMs.
    • ICICI Bank will not levy ATM transaction charges on some of its Savings Account offerings such as Freedom, Privilege Senior Citizens and Silver Savings Accounts.
    • State Bank of India account holders will have unlimited free transactions at the bank’s ATMs if a monthly average balance of Rs.25,000 is maintained. Refer the below table for more information on ATM withdrawal limit and charges.

    ATM withdrawal charges for SBI

    Average Monthly Balance (Charges based on number of transactions) Same branch ATMs Other Bank ATMs (metro) Other Bank ATMs (non-metro)
    Rs.1000 5 3 5
    >Rs.1000 and up to Rs.25,000 5 3 5
    >Rs.25,000 up to Rs.50,000 Unlimited 3 5
    >Rs.50,000 up to Rs.1,00,000 Unlimited 3 5
    > Rs.1,00,000 Unlimited Unlimited Unlimited

    Revision of SBI Service Charges (Modifications and Additions that will be effective on and from June 1, 2017)

    Description of the Service Charges Revised Rates
    Service Charges for the exchange of Imperfect or Soiled Notes
    Value up to Rs.5,000 and up to 20 pieces Nil charges
    Charges for IMPS transfer of funds via INB, MB, OPI or USSD
    More than Rs.1 lakh and up to Rs.2 lakh Rs.15 + GST
    More than Rs.2 lakh and up to Rs.5 lakh Rs.25 + GST
    Up to Rs.1 lakh Rs.5 + GST
    Above 20 pieces and/or value above Rs.5,000
    Above 20 pieces Rs.2 for each piece on the entire tender along with GST.
    Rs.2 for each piece or Rs.5 for 1000 along with GST, whichever is more on the entire tender.
    Example: Rs.500 (25 pieces) is equal to Rs.12,500 Charges Rs.2 for each piece: Rs.50 + GST Charges at the rate of Rs.5 for each Rs.1000: Rs.62.50 + GST Amount that is chargeable is equal to Rs.62.50 + GST
    Applicable for the SBI Buddy Wallet customers
    Service Charges for State Bank Buddy
    Cash deposit in to the Wallet via BC (Business Correspondent) 0.25% of the total transaction value (Minimum of Rs.2 and Maximum of Rs.8) + GST.
    Cash withdrawal from the Wallet Balance vis BC (Business Correspondent) – up to Rs.2,000 in multiples of Rs.100 2.50% of the transaction value (Minimum amount of Rs.6) + GST.
    Cash withdrawal from the Wallet Balance vis ATM Rs.25 for each transaction.
    Service charges for the BSBD (Basic Savings Bank Deposit) accounts
    Cheque Book issuance Cheque Book with 50 leaves – Rs.150 + GST. Cheque Book with 25 leaves – Rs.75 + GST. Cheque Book with 10 leaves – Rs.30 + GST.
    ATM Card issuance The RuPay Classic card is the only card that comes free of cost.
    Withdrawals 4 withdrawals in 1 month free of charges. This includes ATM withdrawals too. After the 4 withdrawals are complete:
    • Home Bank ATMs – Rs.10 + GST for each transaction.
    • Other Bank ATMs – Rs.20 + GST for each transaction.
    At the branch – Rs.50 + GST for each transaction.

    Learn more about Prepaid Cards, RuPay Debit Cards

    How to Avoid ATM Transaction Charges

    When we’re in need of quick cash, most of us rush to the nearest ATM as a matter of habit. With ATMs in nearly every location, convenience plays a part as well. However with the new changes in ATM transaction charges, making multiple trips to withdraw cash or check your balance will cost you over the long run. Here are tips to avoid having to pay a hefty charge:

    Reduce the number of times you need to withdraw by swiping your card instead of paying cash. A number of merchants and vendors now use card readers, saving you the trouble of finding an ATM and the transaction charges.

    Pay your bills online. Move with the times and make your bill payments directly from your bank account.

    Save your free transactions for withdrawals only. Make non-financial transactions like balance enquiries, mini statements etc., through a facility such as mobile banking.

    Make use of your bank’s online platform to conduct financial transactions. You could download their banking app or use their net banking feature.

    Using the above tips will help you save on charges and save your free transactions for emergency cash withdrawals without having to pay the hefty fees now associated with them.



    GST of 18% is applicable on all banking products and services from July 1, 2017 onwards.

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    News About All You Need to Know about New ATM Transaction Charges

    • Some tips to keep in mind to keep your money safe if you are an SBI account holder

      State Bank of India, the largest commercial bank in India has now issued some guidelines to keep in mind to help protect their customers from any card skimming frauds. Since the amount of frauds involved with credit cards, debit cards, and ATM cards are increasing with every passing day, SBI has decided to take an initiative to reduce the number of frauds that are taking place. An email has been sent to each of the customers of SBI to warn them about these frauds and inform them to be safe from these schemes. The bank has mainly warned the banks upon skimming frauds. Card skimming refers to the crime involving copying of credit or debit card details without the knowledge of the card owner. With the change to magstripe with the new cards, the number of such crimes have come down. There is however still a way to commit this crime. Ensure that you do not give you SBI Card details to anyone even if it is your relative or friend. Make sure to hide your password at all times when you are using your card in an ATM or when you are doing an online transaction. Contact the bank customer care if you come across a fraudulent or unknown transaction.

      28 February 2019

    • Doing this will damage your EMV chip-based ATM card permanently

      To increase the safety of transactions, ATM kiosks does not allow you to remove your Europay MasterCard Visa (EMV) card immediately when transacting. The Reserve Bank of India (RBI) instructed all banks issuing debit cards and credit cards to replace the old cards with new EMV chip-based cards in 2015. The central bank further added that old cards will not work after 31 December 2019 and must be replaced with the new cards.

      If individuals try to forcibly remove the card during a transaction, a message will flash on the screen for removing the card. Individuals who forcibly remove the card may end up damaging the card or the chip permanently. The move to change the card was taken as many customers complained about unwanted transactions while using the old cards. The old cards are also more prone to cloning and skimming.

      14 February 2019

    • Old Debit and Credit Cards no more works at ATMs and shops

      The old magnetic stripe debit and credit cards will no more work in ATMs and shops. This is because all the old magnetic chip-based cards have become invalid from 1 January 2019. Instead, these cards have been replaced with more advanced and encrypted EMV chip cards. Earlier, the Reserve Bank of India in 2015 had instructed all the banks in India to dump all the old magnetic stripe cards and replace them with the EMV chip cards. This mandate was given by the central bank as the magnetic stripe cards are easy to duplicate and can be easily scammed. For protecting the customers from frauds the banks had been asked to issue cards having security chips installed in them called as EMV or MasterCard, Europay, Visa chip cards. These cards being encrypted are considered to be more secured compared to the magnetic stripe cards.

      16 January 2019

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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