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  • New ATM Transaction Charges - All You Need to Know

    In August of 2014, the Reserve Bank of India introduced a change to the existing policy governing ATM transactions. The notification pertained to the amount of ATM transactions offered by banks free of charge. RBI policy mandates that banks provide a certain number of transactions free of cost to customers every month. As per the changed policy, Savings Account customers would be eligible for 3 free transactions in a month instead of the earlier 5 free transactions by Debit Card.

    This rule would be applicable in the 6 metro cities, namely Mumbai, Delhi, Bangalore, Chennai, Kolkata and Hyderabad.

    RBI also explicitly stated that the free transactions would include financial as well as non-financial transactions. Non-financial transactions include services such as balance enquiry, changing the ATM pin, mini statement and booking a Fixed Deposit. Financial transactions would be a cash payment or a cash withdrawal.

    Banks will be permitted to charge customers up to Rs. 20/- for every transaction over the free limit. A few banks have begun levying this fee on customers, while others plan on introducing it shortly.

    Revised Charges for ATM Transactions

    For those of you unsure about the free limit and resultant transaction charges for your bank, refer to the table below to gain an understanding of the new rates applicable. The free transactions include financial and non-financial transactions.

    Name of Bank

    Free Transactions allowed (each month)

     

    Fees For Transaction Beyond Free Limit

     
     

    Own Bank ATM

    Other Bank ATM

    Financial

    Non-financial

    Axis Bank

    5

    3

    Rs. 20+ service tax

    Rs. 9.55

    ICICI Bank

    5

    3

    Rs. 20 + service tax

    Rs. 8.50 + service tax

    IDBI Bank

    Unlimited

    5

    Rs. 20

    Rs. 8

    Citi Bank

    Unlimited

    Unlimited

    -

    -

    Bank of Baroda

    Unlimited

    5

    Rs. 20 + service tax

    Rs. 10 + service tax

    HDFC Bank

    5

    3

    Rs. 20+ service tax

    Rs. 8. 50+ service tax

    State Bank of India

    5

    3

    Rs. 20+ service tax

    Rs. 5 for StateBank group banks

    Rs. 8+ service tax, Rs. 5 for StateBank group

    Kotak

    Unlimited

    5

    Rs. 20+ service tax

    Rs. 8.50+ service tax

    Canara Bank

    Unlimited

    5

    Rs. 15+ service tax

    Rs. 5+ service tax

    Punjab National Bank

    Unlimited

    3

    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:

    • For Axis Bank Salary Account holders, the free limit is 10 transactions at Axis Bank ATMs and 5 transactions at non-Axis Bank ATMS.
    • 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. Account holders maintaining a monthly average balance of Rs. 1, 00, 000 will not have to pay a transaction fee.

    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 online/ netbanking 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.



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