ATM Tips: Don't want to pay a ₹23 charge when withdrawing cash from an ATM? Learn these 3 methods..

On April 1st, three major banks delivered a financial blow to the general public. Starting today, significant changes are coming into effect for ATM users. If you make frequent cash withdrawals without proper planning, you could face an additional charge of up to ₹23. The rules implemented by these banks cover free transaction limits, service charges, and cash withdrawal ceilings.

The most significant change is that cash withdrawn from ATMs via UPI will now also be counted towards the free transaction limit. Previously, such transactions were treated separately. This means that if you withdraw cash using UPI, your free transaction quota could be exhausted much sooner.

Once the limit is reached, every subsequent transaction will incur a charge of approximately ₹23, plus applicable taxes. Typically, customers are entitled to 5 free transactions (covering both financial and non-financial operations) at their own bank's ATMs. Conversely, at other banks' ATMs, customers are allowed 3 free transactions in metro cities and 5 in non-metro areas. However, these limits now encompass UPI-based transactions as well, necessitating greater caution on the part of users. It is worth noting, however, that these changes have been implemented by only a few specific banks.

Banks That Have Revised Transaction Charges
Punjab National Bank (PNB) has reduced the daily cash withdrawal limit at ATMs for certain categories of debit cards. While many cards previously allowed withdrawals of up to ₹1,00,000, this limit has now been lowered to ₹50,000. Similarly, the limit for premium debit cards has been reduced from ₹1,50,000 to ₹75,000. These revisions will apply to various debit cards issued by the bank across the RuPay, Visa, and Mastercard networks.

HDFC Bank has also introduced changes to its regulations effective April 1st. Cash withdrawn from ATMs using the UPI interface will now be counted towards the monthly free transaction limit. In other words, cash withdrawals made via UPI will be treated on par with standard ATM withdrawals. This means that as soon as a customer exhausts their free transaction limit—which typically stands at 5 transactions—they will be required to pay a charge of ₹23 (plus applicable taxes) for every subsequent transaction.

Bandhan Bank has revised its rules regarding ATM usage. Under the new regulations, customers will now be entitled to 5 free financial transactions per month at their own bank's ATMs, while non-financial transactions (such as balance inquiries) will remain unlimited. Conversely, when using other banks' ATMs, customers will be allowed 3 free transactions in metro cities and 5 free transactions in non-metro cities. It is important to note that at other banks' ATMs, both financial and non-financial transactions will be counted towards this specific limit. While these new ATM rules may seem like minor adjustments, failing to pay attention to them could lead to an increase in your monthly expenses. If you wish to avoid incurring the ₹23 charge, there are several strategies you can employ.

3 Ways to Avoid the ₹23 Charge
The most crucial step is to plan your ATM usage effectively. Instead of making frequent cash withdrawals, try to withdraw the full amount you need at one time. This will reduce your overall transaction count and prevent you from exhausting your free limit prematurely.

The second strategy is to prioritize using your own bank's ATMs whenever possible. Typically, banks offer a higher number of free transactions at their own ATM locations. In contrast, using other banks' ATMs causes the free limit to be exhausted much faster, leading to the imposition of charges.

Third, opt for UPI or digital payment methods for small-value expenses instead of relying on cash. Additionally, keep a close watch on your monthly transaction count. This will help you anticipate when your free limit is about to be reached, allowing you to easily avoid incurring additional charges.

Furthermore, try to minimize your use of ATMs for tasks such as checking your account balance or generating a mini-statement. Instead, utilize your mobile banking app for these purposes. Many people visit ATMs solely to check their balance, which unnecessarily consumes their free transaction limit. By keeping these small details in mind, you can easily steer clear of the additional ₹23 charge.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.