The RBI authorised banks to charge 21 per additional ATM transaction above the monthly free limit, beginning January 1, 2022.
Every month, all major banks, both public and private, allow a limited number of free ATM transactions. Lenders levy a charge with applicable taxes in addition to free transactions, which include financial and non-financial services.
The number of free ATM transactions varies depending on the type of account and debit card you use.
Using the ATMs after the free monthly transaction limit will result in a charge.
According to a notification issued by the Reserve Bank of India in June last year, banks were permitted to charge a fee of 21 per transaction at an ATM in excess of the monthly free transaction limit, beginning on January 1, 2022.
Previously, banks were permitted to charge 20 for each such transaction.
Customers are allowed five free transactions per month at their bank ATMs, with a maximum of three free transactions at other bank ATMs. Customers in non-metro areas can use other bank ATMs for five free transactions.
Beginning August 1, 2022, the RBI authorised banks to charge an interchange fee of 17 per financial transaction and 6 per non-financial transaction at all locations.
Banks collect ATM service fees to cover the rising costs of ATM installation and maintenance.
All of the major banks charge an annual fee for debit or ATM cards, depending on the type of card a customer has.
Here’s a comparison of ATM fees levied by SBI, PNB, HDFC Bank, ICICI Bank, and Axis Bank:
