The Reserve Bank of India (RBI) has currently approved the banks to inflate the charges for cash and non-cash ATM transactions beyond the no charges monthly legitimate limit. Bank customers will have to pay ₹21 per transaction, instead of ₹20, executing from January 1, 2022, if they cross the monthly restriction of free transactions.
Presently, most of the private and public banks in India permit five free ATM transactions (inclusive of financial and non-financial transactions) in metropolitan cities and towns from their own bank ATMs. In rural zones, however, banks permit up to five free ATM transactions. If you exceed the monthly limit, then the bank charges you a small amount of money to keep ATMs operational.
Also, effective August 1, 2021, banks are permitted to escalate interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres, the RBI circular stated.
Thus, some private banks are proffering unlimited free ATM transactions to their clients. These banks are IndusInd Bank and IDBI Bank.
“IDBI Bank provides charge-less ATM transactions in accordance with the RBI Prescribed minimum complimentary limits. Accordingly, the Bank provides 5 free transactions at its own ATMs. In other Bank ATMs, the Bank renders 3 transactions free at 6 metro sites and 5 transactions free at other zones. The Bank thus provides unlimited free ATM transactions in a few select product variants as per the product strategy,” said Jorty Chacko, Executive Director of IDBI Bank.
IndusInd Bank provides unlimited charge-less ATM transactions at any bank ATM in India. “Unlimited Free ATM Withdrawal with your IndusInd Bank Debit Card across any ATM in India,” indicated the bank’s website.
Per the BankBazaar website, “Citi Bank still provides unlimited free transactions.”
Meanwhile, the nation’s key lender State Bank of India (SBI) permits its customers who maintain an average balance of more than ₹25,000 in their savings accounts unlimited transactions at State Bank Group (SBG) ATMs. Those managing an average balance in excess of ₹1,00,000 in their savings accounts will also be entitled to unlimited transactions at SBG ATMs as well as other banks’ ATMs. SBI had modified its ATM withdrawal rules on 1 July 2020.