The ATM is one of the most widely ad intensively used service today. Life without it almost comes to a halt at times. The government has come up with some rules that bind your use of the ATM in a number of ways, which you must aware yourself about. Below are the 7 rules which have been imposed for ATM users.
1. Withdrawal from same banks’ ATM
Axis Bank, ICICI bank, HDFC bank allow up to 5 free transactions in a month. IDBI, Citibank, Bank of Baroda, Kotak, Canara Bank and Punjab National Bank allow unlimited transactions in a month. SBI allows 5 free withdrawals for accounts with average monthly balance of upto Rs. 25000. Number of withdrawals for SBI accounts with more than Rs.25000 as average monthly balance is unlimited. However, SBI recently made a host of changes to the charges for withdrawal and deposit. It is also common for other banks to regularly update their service fees. Hence, doing some research online or talking to your bank every once in a while, can save you money.
2. Withdrawal from another banks’ ATM
Typically, the number of free transactions permitted per month from ATMs of other banks is less, ranging from 3-5. Sometimes for non-metro cities, same number of same bank and other bank free transactions are permitted by a select few banks.
3. Fees for transactions beyond permissible limit
Since the implementation of GST, banks usually charge a flat fee along with GST as fees for any ATM transaction. The flat fee can be anywhere between Rs. 8-20 depending on the bank. Typically, the flat fee for non-monetary transactions is around Rs.9 and for monetary transactions it is around Rs. 20. The GST rate for all banking products and services is 18%.
Minor account holders and senior citizens are exempted from all the extra charges mentioned above for ATM transactions. Also, a number of additional charges are less for basic ‘no-frill’ savings accounts. These accounts are meant to make banking easy for the poorer people of the country and are hence subject to different rules.
5. ATM cards
SBI recently announced that it will charge a fee for issuing new debit cards. The only card type that would be issued for free would be RuPay Classic Cards. Some banks offer free re-issuance of cards, but others charge a fee. The fee also depends on the type of account and monthly average balance. It is best to get a clarification regarding this directly from the bank, in case you need a new card.
6. Cardless cash withdrawal
SBI has also announced that it will charge a fee of Rs. 25 per transaction for money withdrawal using its app SBI Buddy. The app helps consumers withdraw money from ATMs without having to use a physical ATM card.
7. Non-monetary transactions
Services such as checking balance, printing mini statements and cancelled withdrawals are also treated as transactions. You should be extra careful while entering the amount or your pin as once you exhaust the total number of permitted free transactions, every transaction you do in that month will be charged. It is also a good practice to use net banking or app banking to do mostof your non-monetary activities.
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