New ATM rules regarding free transactions and charges announced
NEW DELHI ( WEB NEWS )
India unveiled new rules for bank customers using ATM machines for transactions across the country.
The central bank of India has outlined updated limits on free usage, cash handling, and additional banking charges.
Free transactions and charges for Metro Cities
Under the revised guidelines, customers in metro cities will be entitled to three free ATM transactions per month.
These include both financial transactions, such as cash withdrawals, and non-financial activities, like balance inquiries.
Free transactions and charges for Non-Metro Cities
For users in non-metro areas, the number of free transactions has been set at five per month.
Once customers exceed the free transaction limit, banks are permitted to charge fees. The maximum charge can go up to 32 rupees plus applicable GST per transaction.
For certain non-financial services, such as checking account balances, some banks may charge up to 11 rupees.
Charges for ATM Transactions
Different banks have specified their own fee structures within these limits.
Punjab National Bank has set charges at 23 rupees for financial transactions and 11 rupees for non-financial ones.
HDFC Bank applies a flat fee of 23 rupees per transaction beyond the free limit, while State Bank of India continues to follow its existing rates.
Regarding cash deposits and withdrawals, the guidelines note that deposits made through cash recycler machines are generally free of charge.
However, fees may apply for withdrawals beyond specified limits, depending on individual bank policies.
The central bank has also emphasized rules concerning large cash transactions.
Customers depositing or withdrawing 20 lakh rupees or more in a year will be required to provide PAN and Aadhaar details.
These measures are part of efforts to improve financial transparency and curb unaccounted money transactions.