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
New Delhi: The Reserve Bank of India (RBI) recently permitted banks in India to increase customer charges for cash and non-cash ATM transactions which are done after the monthly free transactions limit has been reached.
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.
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.
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.
Jorty Chacko, Executive Director of IDBI Bank told Mint, “IDBI Bank offers free ATM transactions in consonance with the RBI Prescribed minimum free limits. Accordingly, the Bank offers 5 free transactions at its own ATMs. In other Bank ATMs, the Bank offers 3 transactions free at 6 metro locations and 5 transactions free at other locations. The Bank however offers unlimited free ATM transactions in few select product variants as per the product design.”
As per IndusInd Bank website, the bank offers unlimited free ATM withdrawals with the IndusInd Bank debit card across any ATM in India.
