RBI has allowed all banks to increase ATM cash withdrawal charges. However, this charge will have to be paid only to those customers who withdraw cash more than the prescribed limit every month.
After the free limit is over, withdrawing money from ATMs will become expensive. This decision was taken by the central bank to compensate banks for higher interchange charges and increase in ATM operational cost.
Currently, most of the private and government banks in India allow 3 to 5 free ATM transactions in urban cities and towns. However, in rural areas, banks allow a maximum of 5 free ATM transactions. If you exceed the monthly limit, banks charge you to keep the ATM running. However, there are some banks which are offering unlimited free ATM transactions to their customers.
So much charge
The charge on cash withdrawal has been increased from Rs 20 to Rs 21. Similarly, RBI has allowed banks to charge Rs 17 instead of Rs 16 as interchange charge. Payment is made by the card issuing bank to the bank whose ATM is used to withdraw cash. While the non-financial transaction ATM charge has been increased from Rs 5 to Rs 6.
These three banks are offering unlimited free transactions
However, there are three private banks in the country that are offering unlimited free ATM transactions to their customers. These banks are IndusInd Bank, IDBI Bank and Citi Bank.
Let us tell you that Citibank is winding up its business in India. IDBI Bank and IndusInd Bank will continue to offer free unlimited ATM transactions to their customers across the country.
According to BankBazaar, if you are an IDBI customer or are planning to open an account with the bank, then you should know that the bank is offering free unlimited transactions at its ATMs and free limited 5 at other banks’ ATMs.
At the same time, IndusInd Bank offers unlimited free ATM transactions at any bank’s ATM in India. According to the bank’s website, you can do unlimited free ATM withdrawal with DusInd Bank Debit Card at any ATM in India.