ATM Cash withdrawal charges Hiked: If you often withdraw money from ATMs, then this news is important for you. From the 1st, you will have to pay more fees for withdrawing money from an ATM if you exceed the free withdrawal limit. The Reserve Bank of India (RBI) has approved the banks to increase ATM charges after the free limit.
Banks have cited the increasing cost of running ATMs, maintenance costs, and the cost of providing service to customers of other banks for the fee hike. Increasing ATM charges simply means that it will put more burden on your pocket. Let us tell you about the impact of increasing ATM charges on the common man and its prevention…
According to the new guidelines, customers can now make a limited number of free ATM transactions every month. 3 free transactions are allowed in metro cities and 5 in non-metro cities. These free transactions include both cash withdrawals and other non-financial activities.
What does increased ATM fees mean?
Under the new guidelines, customers who now withdraw cash from ATMs beyond their free transaction limit every month will have to pay a transaction charge of Rs 23 per transaction. Currently, this limit is Rs 21.
However, the limit of free transactions is the same as before. In metro cities, customers can do 5 transactions free of cost at their bank's ATMs and 3 transactions free of cost at other banks' ATMs per month. At the same time, 5 transactions can be done free of cost from other banks' ATMs in non-metro cities.
Let us tell you that RBI has not made any changes to the free transaction limit. And this rule applies to all savings account holders of all Indian banks.
Big banks gave information to customers-
Most of the big banks like HDFC Bank, IndusInd Bank, PNB, and Kotak Mahindra Bank have already started informing their customers about the changes in ATM charges.
HDFC Bank has announced a hike in ATM transaction charges from the 1st. Cash withdrawals beyond the free limit will now be charged ₹23 + taxes, up from ₹21 + taxes earlier. Non-financial transactions will remain free.
IndusInd Bank has also updated its policy: “All savings, salary, NRI, and current account customers will be charged Rs 23 per transaction for cash withdrawals from non-Indusind Bank ATMs over and above the free limit, effective from the 1st.”
More impact on small banks-
The new ATM charges will be applicable only when customers withdraw cash over and above their free monthly transaction limit. This hike is part of the RBI update based on the recommendations of the National Payments Corporation of India (NPCI). Both banks and white-label ATM operators are pushing for this revision due to rising operational costs.
Smaller banks are likely to be more affected, as they have fewer ATMs and their customers often rely on the ATM network of larger banks. As a result, withdrawing cash or checking balance from an out-of-network ATM will become more expensive for many users.
ATM charges become expensive: Know how to avoid it-
Customers who have to withdraw money from ATMs only once or twice a month do not need to worry. However, those who use ATMs frequently can use these methods to avoid high ATM charges-
-The most important thing is to use only your bank's ATM
-Transact only within the ATM free limit
-If there is less need for cash, then ATM transactions will also be less, for this use options like digital payment, UPI, or mobile wallet.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
