ATM users are usually entitled to a certain number of free transactions in a month. However, one needs to be aware of the caps and conditions, else a fee or charge may be levied.
Before we check out the charges for ATM transactions, let us see the factors on which charges may be levied. First is the nature of transaction as there could be financial transactions such as cash withdrawals, while there could be non-financial transactions such as balance enquiry, mini statement and PIN change. The other important factor is the city where the transaction takes place. Transactions conducted at ATMs in Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad will be considered as Metro ATMs, otherwise counted as a non-metro transaction.
Let us say someone staying in a metro city and holding an ATM card of ABC Bank has transacted at the ATM of BCA bank three times in a month. The very next transaction of merely knowing the account balance at the BCA Bank’s ATM may cost the account holder Rs 20 plus taxes per transaction. This could happen if the ABC Bank allows only 3 free transactions at other bank’s ATM.
One may use the ATM card on ATM installed by other banks. Banks owning the ATMs charge a fee for providing the ATM facility to the customers of other banks. This fee referred to as ‘interchange fee’ is recovered by the ATM deploying bank from the card issuing banks. However, the interchange fee is not fixed across banks and depends on the terms of arrangements betwen them.
How many free transactions
As per the RBI rules, a bank has to offer to its savings bank account holders a minimum number of free transactions at ATMs as under. Few banks offer a higher number of free transactions as well.
Transactions at a bank s own ATMs at any location: Banks must offer their savings bank account holders a minimum of 5 free transactions (including both financial and non-financial) in a month, irrespective of the location of ATMs.
Transactions at any other banks ATMs at Metro locations: In case of ATMs located in 6 metro locations such as Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad, banks must offer their savings bank account holders a minimum of 3 free transactions (including both financial and non-financial transactions) in a month.
Transactions at any other banks ATMs at Non-Metro locations: At any location, other than the 6 metro locations as above, banks must offer the savings bank account holders a minimum of 5 free transactions (including both financial and non-financial transactions) in a month at other bank ATMs.
How much it costs you in using ATMs
In most banks, the fees for transactions beyond free limit is Rs 20 plus GST of 18 percent for financial transactions. In case of non-financial transactions, the fees for transactions beyond free limit is Rs 8 to Rs 10 plus GST of 18 percent. Some banks may charge even more. In case of PNB Bank, over and above the free transactions, charge is Rs. 20 per transaction (financial as well as non-financial transactions)
SBI : Transactions based charges & ATM related transactions
(WEF 01/04/2017) updated upto 24.07.2017
HDFC: ATM Charge structure
* ATM PIN generation: Rs. 50 + applicable taxes
* Decline charges for insufficient balances (For non-HDFC Bank Domestic / International ATMs as well as at International merchant outlets / online stores): Transactions declined at other bank ATMs anywhere in the world will be charged at Rs. 25 + applicable taxes per transaction
* Savings & Salary Account: Charges beyond prescribed limit of free transactions
Cash Withdrawal – Rs 20 plus applicable taxes
Non-Financial Transaction – Rs 8.50 plus applicable taxes
ICICI Bank: (Regular Plus Salary Account)
* Non ICICI Bank ATMs : First 5 transactions in a month (inclusive of financial and non-financial) – Free.
Thereafter, Rs. 20 per financial transaction and Rs. 8.50 per non financial transaction.