You should be cautious in India if you often use a debit card. This is because using an ATM requires paying additional fees. This guideline is applicable whether you use a private-sector bank or a public-sector bank.
Let us explain that each bank sets its own limit, and if a user uses an ATM to make more than that limit, he will be charged. The RBI put into effect this rule in June of last year, which states that if money is taken out of an ATM even after a predetermined free transaction limit, a 21 rupees per withdrawal fee will be applied.
What is the free transaction limit?
The number of times you can use an ATM for free withdrawals is known as the free transaction limit. Customers are permitted five free withdrawals per month or five free withdrawals from ATMs per month. The sixth time you withdraw money, you will be charged.
On the other hand, you are only permitted to use the ATMs of other banks three times per month, albeit this number increases to five in non-metro areas.
Amount charge for withdrawing money
From August 1, 2022, a fee of Rs 17 for financial transactions and Rs 6 for non-financial transactions may be levied, per RBI approval. In that instance, a fee of Rs 20–25 must be paid to withdraw your own deposited funds from the bank.
