How to avoid paying ATM service charges: Top 4 money saving tips
Customers are liable to pay charges on their transaction via ATMs because of certain reasons.
The Reserve Bank of India has rolled out policies regarding transactions carried out through ATMs. Under the policy, in certain cases a bank is allowed to free customers from transaction cost through ATMs every month up to a certain limit. However, if customers surpass certain criteria, then they are liable to pay charges on their transactions via ATMs.
Post demonetisation move, the daily withdrawal through ATMs have been increased from Rs 4,500 to Rs 10,000. Citizens from metro cities like Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai have free transaction limit up to 3, whereas in other location the limit is kept at 5.
Major private banks like Axis Bank, ICICI Bank and HDFC Bank have levied 5 free transactions on withdrawals made through own bank ATM, however in other bank ATMs, the limit is kept at 3.
State-owned banks like IDBI Bank, Bank of Baroda, Punjab National Bank and Canara Bank have unlimited transaction on their own bank ATMs, however in other banks the transaction limit is kept at 5.
In case of largest lender State Bank of India, a salaried individual can make unlimited transactions via ATMs in both cases.
If a customer surpasses the transaction limit, then are liable to pay fees depending upon the structure and guidelines of their banks in which he or she has an account.
The ATM transaction fees comes with a GST of 18% which is applicable on all banking products and services from July 1, 2017 onwards.
According to BankBazaar report, “When we’re in need of quick cash, most of us rush to the nearest ATM as a matter of habit. With ATMs in nearly every location, convenience plays a part as well. However with the new changes in ATM transaction charges, making multiple trips to withdraw cash or check your balance will cost you over the long run.”
Therefore, in order to avoid ATM transaction charges, one can follow the steps given below by BankBazaar.
1. Reduce the number of times you need to withdraw by swiping your card instead of paying cash. A number of merchants and vendors now use card readers, saving you the trouble of finding an ATM and the transaction charges.
2. Pay your bills online. Move with the times and make your bill payments directly from your bank account.
3. Save your free transactions for withdrawals only. Make non-financial transactions like balance enquiries, mini statements etc., through a facility such as mobile banking.
4. Make use of your bank’s online platform to conduct financial transactions. You could download their banking app or use their online/ net banking feature.
Using the above tips will help you save on charges and save your free transactions for emergency cash withdrawals without having to pay the hefty fees now associated with them.
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06:41 PM IST