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Explained: What are ATM cash withdrawal rules of top banks in India and how much does it cost?

Explained: What are ATM cash withdrawal rules of top banks in India and how much does it cost?

The Reserve Bank of India in June last year, allowed banks to charge up to Rs 21 per transaction at the ATM (Automated Teller Machine) above the monthly free transaction limit, effective from January 1, 2022.

ATM cash withdrawal rules: Usually, banks offers five free transactions at the ATMs every month. ATM cash withdrawal rules: Usually, banks offers five free transactions at the ATMs every month.

All the lenders provide a limited number of free ATM transactions every month. Once the limit is exhausted, banks levy a charge along with taxes for any further transactions, including financial and non-financial services. This is in accordance with the Reserve Bank of India (RBI) guidelines.

The RBI, in June last year, allowed banks to charge up to Rs 21 per transaction at the ATM (Automated Teller Machine) above the monthly free transaction limit, effective from January 1, 2022.

Usually, banks offers five free transactions at the ATMs every month. Any transaction after that is chargeable.

Why banks charge for ATM services?

Lenders mostly collect ATM service charges to recover machine installation and related maintenance costs.

Banks also charge an annual fee on debit cards or ATM cards. This depends on the type of the card an individual is holding.

Here's a comparison of ATM charges levied by some top banks in India: 

* State Bank of India (SBI) ATM charges and limits

SBI offers five free transactions at its group ATMs for customers. For non-financial transactions, Rs 5 would be charge at SBI ATM and Rs 8 at other bank ATMs, plus the applicable GST rates.

For cash withdrawal, Rs 10 would be charged at SBI ATMs and Rs 20 per transaction (plus GST) at non-SBI ATMs.

Source: SBI website

SBI's international ATM charges is Rs 100, plus 3.5 per cent of the transaction amount and GST.

* Punjab National Bank ATM charges and limits

PNB cardholders get three free transactions (financial and non-financial) in metros (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) and five transactions in other cities at ATMs every month.

Source: PNB website

* HDFC Bank ATM charges

HDFC Bank gives five free transactions every month and three free transactions in significant cities.

Source: HDFC Bank website

* ICICI Bank ATM charges

ICICI Bank offers the same 3 and 5-transaction rules as other banks when it comes to free withdrawals. ATM withdrawals are subject to an additional bank fee of Rs 21. 

(Source: ICICI Bank website)

* Axis Bank ATM charges

Axis Bank also offers the same 3 and 5-transaction rules for cost-free ATM withdrawals. After that, the bank charges a 21 per cent withdrawal fee.