Free ATM Transactions: Banks cannot charge for these ATM transactions – Check Details here

Free ATM Transactions: The Reserve Bank of Indian has told banks not to treat failed Transactions at ATMs or non-cash transactions such as balance enquiries or cheque book requests as part of five free transactions available to customers every month.

“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 ATM Transactions which will be free,” RBI said in a circular to all scheduled commercial, cooperative and rural banks on Wednesday. These transactions are to be considered as failed transactions and no charges are to be levied for them.

Free ATM Transactions: HIGHLIGHTS 

  • The Reserve Bank of India has come out clarifications on free ATM transactions.
  • Bank account holders get a certain number of free transactions at ATMs.

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 RBI has come out with clarifications on free transactions at ATMs.

Things to know:

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

Currently, India’s largest Bank, SBI offers 8 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.


2 Responses

  1. Govindaraju Hanumantha rao says:

    it is good atleast cheating/robbing money from valuable customers be reduced to some extent

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