“At least I hope my own bank does not charge me. I will not withdraw and keep money for a later date. What is the point of an ATM,” said Viren, a first year engineering student.

While Siddhant Pattnaik, a geophysicist with an MNC, said, “It is just a computer (ATM machine), how much more maintenance can it have. I cannot understand why my own bank should be allowed to charge me?”

Using ATMs (Automated Teller Machines) to withdraw money or for other purposes such as balance enquiry beyond five times in home bank ATMs and beyond three times in a non-home bank ATM in a month will attract ₹20 charge per transaction from November 1.

Though customers are worried, banks are slowing deployment of ATMs as the loss due to customers transacting at non-home bank ATMs is worrisome. It costs banks ₹75-100 for the five transactions done by customers at non-home bank ATMs, as per RBI.

According to Romesh Sobti, MD and CEO, IndusInd Bank, “It is not a big hardship for customers. It is just that they have to manage their cash better to avoid transactions beyond the prescribed limit. I cannot draw money daily for my expenses.”

Private banks’ stance Even as customers are worried about cash management starting this month, some private banks such as ICICI Bank, HDFC bank and Axis bank are maintaining a status quo and not charging customers transacting at their own ATMs.

However, Axis Bank charges ₹20 per customer to non-Axis Bank ATM transactions beyond five and 9.55 per transaction on balance enquiry (non-financial transaction) fees beyond five, as per the bank’s website.

Similarly, for HDFC bank customers, there is no charge for using the card at HDFC Bank ATMs. But current account holders are charged ₹20 on cash withdrawal and savings account customers are charged ₹20 per financial transaction and ₹8.55 plus tax on non-financial transactions. The industry average is about 3 transactions per card per month for most banks. It could be higher for banks with more ATMs such as State Bank of India, Axis Bank, ICICI Bank and HDFC bank.

India has a total of 1.67 lakh bank ATMs across the country as on June 2014. Private banks account for about 49,000 ATMs, while public sector banks having about 1.17 lakh ATMs.

Recently, the RBI came out with guidelines that bank customers in six metros – Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore – are allowed to withdraw money and/or carry out non-financial transactions such as mini-statements at ATMs of banks, where they hold savings/current accounts, free of charge only five times a month, beyond which the customers can be charged ₹20 per ATM use.

Rising costs The number of free transactions at ATMs of non-home banks has been cut to three times a month from five times in metros.

However, banks fear this could increase their customers’ visits to the branches raising cost to the banks. RBI has left the discretion on banks to charge its own customers. Typically, it costs a bank about ₹40-50 per customer for a visit to any bank branch.

Last month, SBI reviewed its ATM usage charges to allow more free transactions to those who avoid visiting its branches. In its latest directive on ATM charges applicable from November 1, SBI said that it will limit the number of branch withdrawals to four a month for those maintaining balances of up to ₹25,000.

For customers with an average monthly balance of ₹25,000 and above, the bank will provide unlimited usage of its own ATM network, but will limit access to non-SBI ATMs to three transactions a month, as suggested by RBI.

The bank will also increase the number of free transactions on its home network from five to nine if the customer does not visit a branch during the month.

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