New Delhi: The Reserve Bank of India has recently allowed the banks to increase the ATM charges levied on customers after they exhaust their free limits. The decision was taken by the central bank to compensate the banks for the higher interchange fee and the general escalation in ATM operational costs.
At present, most of the private and public banks in India allow three to five free ATM transactions in urban cities and towns. In rural areas, however, banks allow up to five free ATM transactions. Also Read: 5 new ATM rule changes you should know
If you exhaust the monthly limit, then the bank charges you a small amount of money to keep ATMs functional. For instance, the fees charged on cash withdrawal has been increased from Rs 20 to Rs 21.
Likewise, the RBI has allowed banks to charge Rs 17, instead of Rs 16, as an interchange fee, a charge paid by the card issuer bank to the bank whose ATM is used to withdraw cash, while the fees for non-financial transactions at ATMs from Rs 5 to Rs 6. Also Read: RBI hikes ATM cash withdrawal fee to Rs 21, other charges also increased, check here
However, there are three private banks operating in the country, which are offering unlimited free ATM transactions to their customers. These banks are IndusInd Bank, IDBI Bank and Citi Bank.
While Citi Bank is wrapping up its operations in India, IDBI Bank and IndusInd Bank are expected to continue offering free unlimited ATM transactions to their customers in India.
However, if you’re an IDBI customer or are planning to open an account with the bank, you may like to note that it offers free unlimited transactions at its own ATMs and five free transactions at other ATMs, according to BankBazaar.
In comparison, IndusInd Bank offers unlimited free ATM transactions at any bank ATM in India. “Unlimited Free ATM Withdrawal with your IndusInd Bank Debit Card across any ATM in India,” the bank websites read.