The Automated Taylor Machine (ATM) has made banking much easier than before, so that customers do not have to visit bank branches repeatedly. However, along with its convenience, many people are still unaware of its rules and charges. Recently, the Reserve Bank of India (RBI) has issued new guidelines regarding ATM Transaction Limit and Charges.
Free Transaction Limit: As per the new rules, customers in metro cities will get only three free transactions every month, including cash withdrawal, balance inquiry and other non-financial transactions. At the same time, customers living in non-Metro cities will get five free transactions. Charges will be levied on transactions more than the prescribed limit.
Charges: If exceeding the free limit, banks can charge a maximum of ₹ 23 (including GST) on every additional cash transaction. At the same time, some banks charge up to ₹ 11 on non-financial transactions like balance inquiry. These rates depend on the policy of different banks.
High-Value Cash Transaction Rules: The government has also implemented new rules on large cash transactions. Now in a financial year, it will be mandatory to give PAN and Aadhaar card if a total of ₹ 20 lakh or more cash deposits (at once or at one time). The purpose of these rules is to curb black money and increase financial transparency.
Ways to avoid ATM charge: The best way for customers is to do most transactions from your bank’s ATM, as there are more free transactions. Use internet or mobile banking for small needs like balance check. Also, take care of the ATM use made every month so that unnecessary charge can be avoided by staying within the free limit.