The type of account and debit card one has opted for is the parameter to decide the number of free ATM transactions a customer will get. The Reserve Bank of India (RBI) has mandated a minimum number of free transactions at ATMs in a month. However, banks are at liberty to offer more free transactions to its customers. According to the RBI FAQs on ATM transactions, bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:
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Criteria for charge at metro/ non-metro locations
Transactions made at a bank’s own ATM in any location: Banks should provide their savings bank account customers with a minimum of five free financial transactions every month, regardless of ATM location. A certain amount of non-cash withdrawal transactions will be offered at no cost.Transactions at any other bank’s ATM in Metro locations: Banks must provide their savings bank account holders a minimum of three free transactions (including financial and non-financial transactions) every month at ATMs located in six metros — Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.Transactions at any other bank’s ATM in non-Metro locations: Banks must give savings bank account holders a minimum of five free transactions (including financial and non-financial transactions) using other bank ATMs in a month at any place other than the six metro locations.
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Free ATM transactions at SBI
The State Bank of India (SBI) customers, who have a monthly balance of up to Rs 1 lakh, get five free transactions at bank ATMs. The number of free transactions in metro locations at other banks, however, is capped at three. The bank charges a fee depending on the kind of transaction and the ATM, for transactions that exceed the free limit. Customers are charged Rs 5 at SBI ATMs and Rs 8 at other bank ATMs for non-financial transactions that exceed the free limit, in addition to the applicable GST rates. Charges for financial transactions beyond the set limit is Rs 20 for transactions done at other bank ATMs and Rs 10 for transactions done in SBI. Transaction decline due to insufficient balance is charged Rs 20 plus GST (18 percent) across all banks.
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Free ATM transactions at HDFC Bank
The HDFC Bank also offers five free transactions per month for its savings & salary account customers at the bank’s ATMs. The ATM transaction charge rate over the free limit is Rs 21 plus tax, says the HDFC Bank website. Non-financial transactions above the limit will be charged Rs 8.50 plus applicable taxes. For domestic ATM transactions done post 7:30 pm, it will be considered as the next day’s transaction.The number of free transactions per month at other bank ATMs is limited to 3 in metro areas and 5 in non-metro areas. Only cash withdrawal transactions will be charged for transactions made at HDFC Bank ATMs. The balance inquiry, mini statement, and PIN change are non-financial transactions, hence are not charged.Do note that both financial (cash withdrawal) and non-financial transactions will be taken into account when charging for transactions made at non-HDFC Bank ATMs.
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Free ATM transactions at ICICI Bank
Savings Bank account holders are given 5 free financial transactions per calendar month at ICICI Bank ATMs but all non-financial transactions are free. The cost of cash withdrawals at ICICI Bank ATMs is Rs 21 per transaction, says the bank website.A maximum of 5 transactions per calendar month (including of financial and non-financial transactions) with a cap of 3 free transactions in 6 metro locations would be permitted at other bank ATMs.
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Transactions that don’t fall under free transactions category
Financial and non-financial transactions at other bank ATMs are included in the prescribed number of free transactions. The number of free ATM transactions does not include non-cash withdrawals (such as balance inquiries, requests for cheque books, tax payments, funds transfers, etc.) made at own bank ATMs.According to the RBI FAQs, “Transactions that fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly / wholly to the bank / service provider; invalid PIN / validations; etc., shall not be counted as valid ATM transactions for the customer. Consequently, no charges thereon shall be levied.”(Text by Sneha Kulkarni)
