Automated Teller Machines (ATMs) have always been one of the most convenient ways to access cash and basic banking services. But now, new guidelines have put stricter limits on free ATM usage. According to the latest RBI rules, the number of free transactions has been reduced, and customers will need to pay charges once the limit is exceeded. Additionally, large-value cash transactions now come under stricter monitoring.
Free ATM Transactions – Metro vs Non-Metro Cities
To make ATM usage more balanced, cities have been divided into two categories:
- Metro Cities: Customers can perform only 3 free ATM transactions per month.
- Non-Metro Cities: Customers are allowed up to 5 free ATM transactions per month.
These free transactions include not just cash withdrawals but also balance checks, mini statements, and other non-financial activities. This means even simple actions like checking your account balance will be counted as part of your free quota.
Charges Beyond the Free Limit & High-Value Rules
If you cross the free limit, extra charges will apply:
- Cash Withdrawal: Up to ₹23 per transaction (including GST)
- Balance Inquiry/Non-Financial Transaction: Up to ₹11 per transaction
The exact charge may vary slightly from bank to bank since they have the flexibility to fix fees within RBI’s guidelines.
Along with ATM limits, the RBI has introduced stricter rules for high-value cash deposits and withdrawals:
- Any transaction of ₹20 lakh or more in a financial year (deposit or withdrawal) must be reported by the bank.
- PAN and Aadhaar details are mandatory for such high-value transactions.
These measures are aimed at ensuring transparency, tracking large movements of cash, and preventing misuse of money.
How to Avoid Extra ATM Charges
- Use your own bank’s ATM whenever possible.
- Check balances and mini statements via mobile banking, net banking, or SMS alerts instead of using an ATM.
- Plan your withdrawals — it’s better to take out a lump sum instead of making multiple small withdrawals.
- Track your monthly ATM usage so you don’t cross the free limit unknowingly.
Final Takeaway
- Metro cities – 3 free ATM transactions per month.
- Non-metro cities – 5 free ATM transactions per month.
- Charges after the limit – ₹23 for cash withdrawal, ₹11 for non-financial activity.
- High-value transactions – Above ₹20 lakh in a year require PAN & Aadhaar.
In short, ATMs remain an important facility, but with these new rules, customers should plan their usage wisely. Using digital banking options more often not only saves extra charges but also makes money management more convenient.
