ATM Withdrawal and Transaction Limit Explained

With the Reserve Bank of India (RBI) regulations effective from January 1, 2022, ATM users in India are allowed five free transactions per month across most banks. These include both financial (cash withdrawals) and non-financial (balance inquiries, mini statements) transactions. Beyond this limit, banks levy charges for additional transactions. That said, Privilege Savings Account customers can enjoy unlimited free transactions across ATMs in India.

Daily ATM Withdrawal Limits

The maximum daily withdrawal limit varies from bank to bank, depending on the type of account and card you hold:

• Basic Accounts: Limits typically start at ₹25,000 per day.
• Premium Accounts: Limits can go up to ₹2,50,000 per day.

For more information regarding Ujjivan Small Finance Bank daily withdrawal limit, please click here.

ATM Transaction Charges Explained

Once you exceed the pre-specified transaction limit/month (generally 5 free transactions unless you’re a premium account holder), the bank may impose certain charges on each ATM transaction carried out in that month:

• Charges on ATM transactions (financial) in excess of the free limits for transactions done at other bank ATMs: ₹21
• Charges on ATM transactions (non-financial) in excess of the free limits for transactions done at other bank ATMs: ₹10

The Reserve Bank of India (RBI) has approved a revision in ATM interchange fees, increasing charges by ₹2 for financial transactions and ₹1 for non-financial transactions. As reported by The Financial Express, these revised rates will come into effect from May 1.

With this change, cash withdrawal charges will rise from ₹17 to ₹19 per transaction, while balance inquiries will now cost ₹7 instead of ₹6.

Interchange fees are the charges banks pay each other for providing ATM services to customers. This adjustment is expected to have a notable impact on smaller banks that operate with a limited ATM network.

The RBI had last updated these fees in June 2021. However, it remains unclear whether banks will pass these increased costs on to their customers.

Disclaimer: The charges may vary based on the account you hold. 

Can You Increase Your ATM Withdrawal Limit?

Yes, it is possible to increase your ATM withdrawal limit. Here's how:

1. Contact Your Bank: Call or visit your bank to request an increase in your daily ATM withdrawal limit.
2. Temporary Increase: Banks often approve temporary increases for specific needs, like travel or major purchases.
3. Permanent Increase: For a permanent change, provide a valid reason, such as frequent high-value transactions, and demonstrate a good banking history.
4. Factors Considered: Your bank may evaluate the length of your relationship, account type, and transaction patterns before approving your request.

Disclaimer: The above section is a generic procedure you may follow. However, the increase in ATM limit is solely at the discretion of the bank. Please contact your bank representative for better understanding. Alternative, you can check the schedule of charges here.

How to Avoid Paying ATM Charges

1. Use Partnered ATMs

• Identify in-network ATMs or those partnered with your bank.
• Ujjivan Small Finance Bank customers, for instance, can use ATMs from partnered networks to maximize free transactions.

2. Opt for Online Transactions

• Use digital payment methods like UPI, net banking, or mobile banking to settle bills and make purchases.
• This preserves your free ATM transactions for when cash withdrawals are absolutely necessary.

3. Swipe Your Debit Card

• Pay directly using your debit card at stores instead of withdrawing cash.
• Most merchants now accept card payments, reducing the need for ATM visits.