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ATM Cash Withdraw: What is the free limit for withdrawing cash from ATM? Know the rules of RBI

It often happens that we go to ATM to withdraw cash and there is no cash in the machine.

There is also an aspect of ATM that sometimes we have to pay extra charge for withdrawing cash from ATM. This happens when we do a transaction after the free withdrawal limit. That is why it is important to know that at which places we can do free transactions from ATMs and how much charge will have to be paid after the limit.Also Read:PM Kisan: Click here to see the list of PM Kisan beneficiary, you will get all the information


As per RBI rules, a customer can do five free transactions (financial and non-financial) every month from any ATM of his bank. There is a limit of three free transactions (financial and non-financial) from ATMs of other banks in six metro cities of Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. For small towns, there is a 5 free withdrawal limit from ATMs of other banks.

How much charge after free limit

Banks levy charges for withdrawing money more than the fixed free limit from banks’ ATMs. At present, the per customer per transaction charge outside the limit is Rs 20 plus GST. This means that if you transact from your bank or other bank’s ATM beyond the free transaction limit, then you will have to pay this charge per transaction.Also Read:Good News: These 33 services including learning license will be available from today sitting at home in Delhi

Charges will increase from January 1, 2022

Recently, RBI has allowed banks to increase fees for withdrawing cash or doing other transactions more than the fixed free monthly limit through ATMs from next year. Under this, if bank customers transact more than free withdrawal from January 1, 2022, then they will have to pay Rs 21 plus GST per transaction. The increased fee will be applicable from January 1, 2022.

Interchange fee also increased

According to an RBI circular, the ‘interchange fee’ per financial transaction has been increased from Rs 15 to Rs 17 and in case of non-financial transactions from Rs 5 to Rs 6 with effect from August 1, 2021. In view of the increasing cost of installation of ATMs and increase in ATM maintenance expenses, it has been approved to increase the fee. Banks install ATMs for the convenience of their customers. Along with this, services are also provided to the customers of other banks. For usage beyond the prescribed limit, they charge a fee which is called interchange fee.Also Read:New feature being launched for WhatsApp Web users, now you can do this amazing thing with photos

Banks will also pay penalty from October 1

According to the new order of RBI, banks / white label ATM operators have been asked to ensure the availability of cash in ATMs and strengthen their systems. If the banks are not able to ensure the presence of cash in the ATM, then they will have to pay the prescribed penalty. This scheme will be effective from October 1, 2021.



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