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Business News/ Money / Calculators/  Customer charges on ATM usage waived till 30 December
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Customer charges on ATM usage waived till 30 December

The waiver of charges on ATM usage will be effective from 10 November 2016 to 30 December 2016

Aniruddha Chowdhury/MintPremium
Aniruddha Chowdhury/Mint

In the wake of current cash crunch due to banning of old Rs500 and Rs1,000 currency notes, the Reserve Bank of India (RBI) has taken several measures in the past week to tackle the situation. In its latest move, it has asked banks to waive off charges on all ATM transactions till 30 December.

According to an RBI circular issued on 14 November, banks shall waive off ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at those of other banks, irrespective of the number of transactions during the month.

The above waiver of charges on ATM usage will be effective from 10 November 2016 to 30 December 2016, subject to a review.

The charges

Financial transactions include withdrawal of cash from own bank’s ATM or from other banks’ machines. Besides that, banks will also not charge for non-financial transactions conducted through ATMs such as balance enquiry, taking mini statement and changing PIN. Charges for such transaction vary across banks, and are also based on the nature of transaction.

There are different rules for transactions conducted at metro and non-metro ATMs. ATMs in six metro cities: Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad, are considered as metro ATMs.

For instance, State Bank of India (SBI) provides unlimited free ATM transactions to its customers at the bank group’s ATMs. But a customer can do up to five free transactions during a month (for savings bank account only) at other bank’s ATMs.

In case a customer uses other bank’s ATMs beyond five transactions , then Rs17 (including service tax) will be charged for financial transaction and Rs6 (including service tax) for non-financial transaction.

Similarly, HDFC Bank Ltd provides five free ATM transactions to its customers per month at its own ATMs. Also, a customer can do up to five transactions free of cost during a month at other banks’ non-metro ATMs and three at metro ATMs.

In case a customer conduct more than prescribed limit of free transactions , then Rs20 (excluding service tax) is charged in case of cash withdrawal and Rs8.50 (plus applicable taxes) for non-financial transactions.

Few charges waived

Soon after the government announced a ban on old Rs500 and Rs1,000 notes on 8 November, some banks announced waiver of few charges. Banks such as ICICI Bank Ltd and Kotak Mahindra Bank Ltd have waived cash deposit charges in savings accounts till 30 November.

ATM transaction charges have also been waived for ICICI Bank’s customers at same-bank ATMs till 31 December. Yes Bank Ltd announced that the bank has waived charges on withdrawals from ATMs of other banks from 11 November to 20 November 2016.

However, with this RBI circular, there will be a blanket rule covering all the banks and no bank would be able to charge for any transaction, irrespective of the number and nature of transactions by its account holders.

This will give some respite to people who are trying their luck by standing in long queues at ATMs in order to withdraw the new currency.

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Published: 17 Nov 2016, 04:10 PM IST
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