The Reserve Bank of India (RBI) has made some changes to the rules of ATM transactions. These new rules include information related to the free transaction limit, extra charge, and cash deposit/withdrawal. Know what changes have been made in withdrawing money from ATM now, and how you can avoid unnecessary ATM charges.
RBI’s new ATM rules
According to the RBI’s new ATM rule, every bank customer can do some free transactions every month from their bank’s ATM. Its number varies according to cities.
In metro cities
In metro cities like Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad, customers get the facility of 3 free transactions every month. This includes both cash withdrawal and balance check.
In non-metro cities
In all other non-metro cities, this limit has been increased to 5 free transactions.
These charges will be levied after the free limit
If you make free ATM transactions beyond the free limit given by your bank, you will be charged an additional fee. This charge can be up to ₹ 23 + GST on every financial transaction. Some banks charge up to ₹ 11 for non-financial transactions, such as a balance check or mini statement. For example, banks like PNB and HDFC charge up to ₹ 23 + GST for financial transactions and ₹ 11 + GST for non-financial transactions. However, the old rates are currently applicable in SBI.
Rules for cash deposit and withdrawal
Apart from ATMs, there are some rules for cash deposit and withdrawal as well. There is usually no charge for depositing money in Cash Recycler Machines. However, if you make a cash transaction (deposit or withdrawal) of ₹20 lakh or more in a year, then it will be mandatory for you to provide your PAN and Aadhaar card. This rule has been made to curb black money.
How to avoid unnecessary ATM charges
If you want to avoid these extra charges, then keep some things in mind:
Try to always use the ATM of your bank.
Use netbanking or mobile banking for things like balance check, statement, or fund transfer.
Keep a track of how many ATM transactions you are doing every month.
By adopting these easy methods, you can save your money and use the ATM smartly.