Banks can't include non-cash withdrawal transactions like balance enquiry, cheque book request, payment of taxes and funds transfer under free ATM transactions. Banks also can't include failed ATM balance enquiry, cheque book request, payment of taxes, or funds transfer. Banks provide a certain number of free transactions at ATMs to their customers every month and beyond that they impose charges. For the benefit of bank account holders, the banking regulator Reserve Bank of India or RBI has come out with clarifications on free ATM transactions. Here are five things to know about what free ATM transactions.

1) The RBI, in a circular dated 14 August, clarified that transactions which fail on account of technical reasons like hardware, software, and communication issues shall not be counted as valid ATM transactions for the customer.

2) Other failed ATM transactions like non-availability of currency notes in the ATM, transaction declines attributable to the bank or service provider will also not be considered as valid ATM transactions for the customer.

3) Invalid PIN/validations etc, which result in failed ATM transactions, will also be not counted as valid ATM transactions.

4) RBI said that banks cannot charge customers for these failed ATM transactions due to these reasons. "It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc., are also included in the number of free ATM transactions," the RBI said.

5) Non-cash withdrawal transactions at ATMs such as balance enquiry, cheque book request, payment of taxes, funds transfer shall also not be part of the number of free ATM transactions, RBI said.

Currently, India's largest bank State Bank of India offers eight free transactions to regular savings bank account holders, including five transactions at SBI ATMs and three at other bank ATMs. In non-metros, such account holders get 10 free transactions, including five at SBI ATMs and five at others.

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