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Beginning December 1, HDFC Bank customers across the country will have to pay ₹20 per transaction beyond five free transactions at its own ATMs. At other bank ATMs in the six metros, customers will be charged beyond three free transactions.
HDFC Bank is the first private bank to impose charges on its customers for withdrawals at its own ATMs. Other banks are likely to follow suit.
At present, most banks have not imposed any limits on the number of transactions at their own ATMs.
After the new RBI guidelines on ATM transactions released in September, HDFC Bank, the country’s second largest private sector lender, has decided to charge its salary and savings account holders ₹20 per transaction for using HDFC Bank ATMs beyond five transactions.
The bank will charge ₹8.5 plus taxes per transaction for non-financial transactions, such as balance enquiry, change of PIN, mini statement, etc., according to the bank’s website.
The bank’s current account holders will not be charged for using an HDFC Bank ATM.
According to the RBI, from November 1, beyond three free transactions in metros (Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad) and five free transactions in non-metros a month, banks can impose charges up to ₹20 per transaction on their customers transacting at other bank ATMs.
RBI had left it to the banks’ individual discretion to charge customers or bear the cost. Currently, there is no limit on customers for using own-bank ATMs.
Most banks are silent on using the discretion to charge own-customers.
Last month, State Bank of India reviewed its ATM usage charges, limiting the number of branch withdrawals to four a month for those maintaining balances of up to ₹25,000, effective November 1.
ICICI Bank said it has so far maintained status quo and its customers will continue to enjoy unlimited transactions at its own ATMs.
Bankers said the frequent withdrawal of small amounts is a cost to banks.
Typically, it costs a bank about ₹40-50 per customer visit to a bank branch.
Cash management The new limit is not a big hardship for customers and will help manage cash better, bankers said. Though some customers said they might need to withdraw a lump sum amount at one go, some preferred to visit the branches to avoid the charges.
However, a private bank official said: “How many customers will waste time and go to the bank branch? Instead they would withdraw a little more at one go.”
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