If you often withdraw money from ATMs, it is important to know about the Reserve Bank of India’s (RBI) latest rules.
In metro cities, customers get 3 free ATM transactions every month.
In non-metro cities, customers get 5 free transactions every month.
Beyond this limit, banks can levy charges. HDFC Bank, PNB, and IndusInd Bank have recently revised their ATM transaction charges, while SBI is still following the old fee structure.
Cash Deposit and Withdrawal Rules
The free limit includes:
Financial transactions like cash withdrawal.
Non-financial transactions like balance enquiry and PIN change.
Cash deposits through cash recycler machines are usually free. However, once the free monthly limit is crossed, banks can charge up to ₹23 per transaction, along with GST.
For example:
PNB charges ₹23 on financial transactions and ₹11 on non-financial transactions.
HDFC Bank charges ₹23 per transaction.
Cash Transaction Limits in India
Apart from ATM rules, there are restrictions on cash transactions in the country.
If you deposit or withdraw ₹20 lakh or more in a financial year, you must provide your PAN or Aadhaar number.
These rules are meant to curb black money and ensure transparency in the banking system.
Tips to Avoid Extra ATM Charges
Prefer using your own bank’s ATM for withdrawals.
Use digital banking methods when cash is not required.
Always keep track of your monthly ATM usage to avoid unnecessary charges.
