ATM has made banking easier, but now new limits and charges have been imposed on its use. The Reserve Bank of India (RBI) has issued new guidelines regarding ATM transactions. Now it is very important for you to know how many times you can withdraw money for free and how much you will have to pay after that. These rules will have a direct impact on your pocket, so you need to know all the information related to them.
New rules for ATM use
ATM use is no longer free. RBI has made some important changes regarding transactions. Now in metro cities (like Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad), customers can make free transactions only 3 times a month from the ATM of any bank other than their own bank. At the same time, this limit is 5 times in non-metro cities. This limit applies not only to cash withdrawals, but also to balance inquiries and non-financial transactions.
These charges will be levied for withdrawing more money from the ATM
If you exceed the limit of free transactions, then a charge will be levied on every additional transaction. A maximum fee of ₹ 23 per transaction (including GST) may be levied for each cash withdrawal. A fee of ₹ 11 per transaction will also be levied for checking balance or other non-financial transactions. This charge may vary slightly according to the policy of each bank, but this is the maximum limit set by the RBI.
New rules on transactions of ₹ 20 lakh or more
Now, if you deposit or withdraw cash of ₹ 20 lakh or more in your bank account in a year, then it has become mandatory to report it. Along with this, it is now necessary to provide PAN and Aadhaar information. This step has been taken to increase financial transparency and curb black money.
Easy ways to avoid ATM charges
If you want to avoid these charges levied every month, then you can adopt these smart methods.
There is no limit on the number of transactions from your bank’s ATM. By using this, you can avoid additional charges.
Use net banking or a mobile app to check your balance or transfer funds. It is free and convenient.
Keep a record of the transactions done from the ATM every month, so that you know whether you are within the free limit or not.
With these changes, ATM will now have to be used more carefully. The main objective of these new rules is to promote digital payments and banking.