New RBI ATM rules: Free transactions, cash limits and bank charges explained

RBI rules allow customers three free ATM transactions per month in metro cities and five free transactions in non-metro areas. Beyond these, banks can levy charges, with some like HDFC, PNB, and IndusInd already revising their fees, while SBI still follows its older charge structure.

The free limit covers both financial transactions such as cash withdrawals and non-financial ones like balance inquiries or PIN changes. Cash deposits at cash recycler machines are generally free, but withdrawals beyond the limit attract charges depending on the bank.

Once you cross the free monthly limit, banks can charge up to Rs 23 per transaction, plus applicable GST. For example, PNB levies Rs 23 for financial transactions and Rs 11 for non-financial ones, while HDFC Bank applies a flat Rs 23 per transaction.

Apart from ATM-specific rules, cash transactions in India have broader restrictions. Deposits or withdrawals of Rs 20 lakh or more in a financial year require quoting your PAN and Aadhaar. These rules aim to curb black money and bring more transparency to the banking system.

To stay within free limits, try to use your own bank’s ATM whenever possible and rely on digital banking for non-cash needs. Tracking your ATM usage helps you avoid unnecessary fees and makes banking more cost-efficient.