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Unlimited Free ATM Transactions Across India Being Offered By 3 Private Banks

The Reserve Bank of India ((RBI), has recently permitted the banks to increase ATM charges charged on customers after they exhaust their free transaction limits. The assessment was made on the recommendations of a committee that was assigned with the job of evaluating the ATM charges and the fee structure.

The decision was taken by the Central Bank to pay compensation to the banks for the higher interchange fee and the overall increase in ATM operating costs. An interchange fee is an amount paid by a card-issuing bank to ATM operators when its customer uses an ATM that it does not own.


Beginning August 1, 2021, banks will be able to increase ATM transaction fees.

Currently, most private and public sector banks in India allow three to five free ATM transactions in urban areas. However, in rural areas, banks allow customers up to five free ATM transactions.


The central bank has also allowed an increase in non-financial transactions from Rs 5 to Rs 6 across all centres. Customers have also been allowed three free transactions from ATMs of other banks in metropolitan cities and five transactions in non-metro cities.


Bank Charges in Detail


If you exhaust the monthly limit, the bank charges a small amount to keep the ATMs functional. For example, cash withdrawal charges have been increased from Rs 20 to Rs 21.

Similarly, the RBI has allowed banks to charge Rs 17 instead of Rs 16 as interchange fee, a fee paid by the card-issuing bank to the bank whose ATM is used to withdraw cash, while non-financial ATM transaction fees have been increased from Rs 5 to Rs 6.

However, there are yet three private banks in the country, which offer unlimited free ATM transactions to all their customers. These private banks are IndusInd Bank, IDBI Bank and Citi Bank.


While Citi Bank is shutting down its operations in India, IDBI Bank and IndusInd Bank are expected to continue offering unlimited free ATM transactions to their customers in India.

However, if you are a customer of IDBI or planning to open an account with this bank, you should note that it offers free unlimited transactions at its own ATMs and five free transactions at other ATMs, according to a report of BankBazaar.


In comparison, IndusInd Bank offers unlimited free ATM transactions at ATMs of any bank across India. The Induslnd Bank’s official website says, "Unlimited free ATM withdrawals with your IndusInd Bank Debit Card at any ATM in India.”

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