New ATM Rules Rolled Out by RBI: What Cardholders Need to Know

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The Reserve Bank of India (RBI) has introduced new regulations for ATM card users that will directly impact how often and how freely customers can withdraw cash or check their account balance. These changes, which include revised transaction limits and increased charges, are now in effect and apply to all ATM cardholders across the country.

🆓 Limited Free Transactions Per Month

Under the new guidelines:

  • Own Bank ATMs: Customers can make up to 5 free transactions per month, including cash withdrawals and balance inquiries.
  • Other Bank ATMs:
    • In metro cities, only 3 free transactions are allowed.
    • In non-metro cities, the limit is 5 free transactions.

Once these limits are exceeded, users will be charged for every additional ATM interaction.

💸 Increased Transaction Charges

Previously, banks charged ₹21 per transaction beyond the free limit. This has now been increased to ₹23, with additional GST applicable. These charges apply not only to cash withdrawals but also to non-financial transactions like balance checks.

📉 Daily Withdrawal Limit Reduced

In addition to transaction fees, several major banks have lowered the daily cash withdrawal limit:

  • For regular savings accounts, the limit has been reduced from ₹25,000 to ₹20,000.
  • Premium account holders may have slightly higher limits, but most customers will need to plan their withdrawals more carefully.

🏦 Bank-Specific Updates

Leading banks have already issued notices to their customers:

  • HDFC Bank: From May 1, ATM transactions will incur ₹23 + tax.
  • PNB: Charges ₹23 for financial transactions and ₹11 for non-financial ones at non-PNB ATMs.
  • SBI, ICICI, YES Bank: Have aligned their charges with RBI’s updated guidelines.

✅ What Should Customers Do?

With these new rules in place, customers are advised to:

  • Monitor ATM usage to avoid unnecessary charges.
  • Use digital payment methods like UPI or net banking for routine transactions.
  • Withdraw larger amounts less frequently to minimize visits to the ATM.

These changes aim to streamline ATM usage and encourage digital transactions, but they also demand greater awareness and financial planning from everyday users.

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