ATM withdrawals
The Reserve Bank of India has issued new guidelines for ATM usage charges for residents living in six metropolitan cities while using ATMs of different bank located in non metro centers. If you are one of those using ATMs frequently for cash withdrawal or checking of balance or statement enquiries make sure you know the free ATM transaction limit depending on the city of your residence. The new rule is likely to impact residents of metropolitan centers who travel frequently to non metro centers allowing them two free ATM transactions per months in case they use ATM of other banks in non metro centers.
RBI ATM Transaction Rules: According to the new RBI guidelines that came into effect from 1st November 2014, savings bank account holders in metropolitan cities are allowed only three transactions from ATMs of other banks and five from the same bank. For any ATM transaction above the stipulated limit, a transaction fee of Rs. 20 would be charged to the account holder.
New Rule for Usage of other bank ATMs: According to the new ATM usage guidelines issued by the Reserve Bank of India, the number of free transactions in a month at non-home ATMs for people in six identified metros would remain at three transactions per month. The RBI has however relaxed the usage of other bank ATM’s in non metro centers allowing customers of these centers to use their card without any transaction charges two more times in non-metro centers.
For people living in Metropolitan cities including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata:
| Bank | Transaction Type | Transaction Limit |
| Same Bank |
|
5 free transactions per month. Additional transaction will be charged at Rs. 20 per transaction. |
| Different Bank |
|
3 free transactions per month. Additional transaction will be charged at Rs. 20 per transaction. |
| Different Bank in Non Metro Centers |
|
2 free transactions per month. |
For people living in non metropolitan cities:
| Bank | Transaction Type | Transaction Limit |
| Same Bank |
|
5 free transactions per month.Rs. 20 is applicable for each cash withdrawal and Rs 9 for non-cash transactions. |
| Different Bank |
|
5 free transactions per month.Rs. 20 is applicable for each cash withdrawal and Rs 9 for non-cash transactions. |
| Different Bank in Metro Centers | No Change | No Change |
RBI ATM Usage Guidelines: The Reserve Bank of India has made it clear that the bank is only issuing guidelines for ATM usage and banks are free to offer more number of free transactions per month at their own as well as on other bank ATMs if they desire. RBI guidelines stipulates the minimum free transactions that each bank has to offer its customers depending on the geographical location of the customer as non metro or six pre defined metropolitan centers.
Tips for saving ATM charges
Plan ahead: A little planning about your cash flow will help a lot in avoiding unwanted ATM visits and use of non-home ATMs.
Say ‘No’ to small withdrawals: It is a good idea not to keep too much cash in hand to avoid impulsive spending. But remember,multiple ATM visits make you pay more. So try and strike a balance between the two.
Say ‘Yes’ to online banking and mobile banking: Next time when you want to check your account balance, get mini statement or transfer money to someone’s account, rely on net banking or mobile banking instead of getting into an ATM
Use home ATMs: Avoid other bank ATMs as far as possible. If you are new in a place and don’t know the closest ATM location, you can check it online on the bank’s site or download ATM locator app if your bank offers it.