ATM Service Charges 2022: New Charges, Withdrawl Limit, Etc

ATM Service Charges – ATM Service Charges across banks are all set to increase service charges per transaction from Saturday, following an order from the Reserve Bank of India (RBI) and customers will have to Rs 1 more beyond the permissible free transactions for cash as well as non-cash purposes, As per the RBI notification dated June 10, 2021, from January 1, 2022, banks have been permitted to charge Rs 21, instead of Rs 20 with applicable taxes, if any, shall be additionally payable.

Lenders like ICICI Bank, HDFC Bank, and Axis Bank have updated their website regarding the increased charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users

ATM Service Charges in India

“The increase of service charges per ATM transaction will be charged from the customers beyond a number of transactions permitted by the respective banks. This increase is only Rs 1 plus Goods and Services Tax (GST), which is very nominal to customers against the maintenance charges paid by banks as earlier they were charging Rs 20.”

Ashwani Rana, Founder of, Voice of Banking said

According to the change in regulations from the Reserve Bank of India, customers are now entitled to 3 free ATM transactions each month instead of 5 transactions.

The rule is applicable for customers in Bengaluru, Mumbai, Chennai, Kolkata, Delhi, and Hyderabad.

It is to be kept in mind that transactions include both financial and non-financial transactions at ATMs.  The maximum fee which can be charged is Rs.20.

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CONTINUE READING BELOW
  • Citi Bank still offers unlimited free transactions 
  • IDBI Bank offers free unlimited transactions at own ATMs and 5 free transactions at other ATMs. 

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New ATM cash withdrawal charges effective 1 January 2022

Starting 1 January 2022, customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed the monthly limit of free transactions.

ATM Service Charge Changes in India

Banks have already notified the hike
According to the HDFC Bank website, the ATM transaction charge rate is beyond the free limit of Rs. 20 + taxes will be changed to Rs. 21 + taxes as of January 1, 2022. Only cash withdrawal transactions will be evaluated for a charge at HDFC Bank ATMs.

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New ATM Transaction charges

Starting next month, customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed the monthly limit of free transactions.

“To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022,”

the RBI had said in a circular.

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Free ATM Cash Withdrawals

Customers will continue to be eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They would also be able to do three free transactions from other bank ATMs in metro centers and five in non-metro centers.

Monthly limit of free ATM transactions at own bank

However, the bank customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.

Monthly limit of free ATM transactions at other bank

Apart from this, the bank customers are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs that is three transactions in metro centers and five transactions in non-metro centers.

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What is the Monthly limit of free ATM transactions at your own bank?

Monthly limit of free ATM transactions at other banks, However, the bank customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.

What is the Monthly limit of free ATM transactions at other banks?

Apart from this, the bank customers are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs that is three transactions in metro centers and five transactions in non-metro centers.

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