All public and private sector banks allow a limited number of free transactions at ATMs every month. If the user exceeds this limit, including financial and non-financial services, the lenders levy a charge with applicable taxes.
The number of free transactions from ATMs differ depending on the type of account and the debit card you hold.
According to a notification issued by the Reserve Bank of India last year, banks could charge Rs 21 per transaction at the ATM above the monthly free transaction limit, effective from 1 January 2022.
As per the reports, after the free transactions limit is reached, the users will be charged for further transactions.
Customers are allowed five free transactions at the bank ATMs every month. The limit is set to three free transactions for other bank's ATMs. Customers in non-metro centres can avail five free transactions at ATMs of other banks.
The RBI has allowed the banks to levy an interchange fee of Rs 17 per financial transaction and Rs 6 for each non-financial transaction at all centres starting 1 August 2022.
The reason behind the banks collecting ATM service charges is to meet the increasing ATM installation and maintenance costs.
All the major banks also charge an annual fee on debit cards or ATM cards, depending on the kind of card a customer possesses.
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