If you are one of those, using bank ATMs for frequent cash withdrawals, it’s time to change your habit for good to avoid any unnecessary charges. Here are some tips for individual account holders to minimize their bank ATM usage and avoid payment on an ATM usage fee for exceeding the free usage limit.
According to the Reserve Bank of India guidelines, all savings bank account holders in metropolitan cities would be allowed five transactions from ATMs of their banks inclusive of cash withdrawals, mini statement and change of personal identification number or PIN number or balance enquiry. The RBI guidelines though initially restricted free transactions to three per month when using ATMs of other banks effect from 1st November 2014, later there was a relaxation to the policy allowing banks to fix their stipulated free ATM transactions. Since RBI has indicated that it has laid down guidelines for minimum free ATM transactions per month for people living in six metropolitan cities including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata, the final decision on decided the upper limit in the number of free bank ATM transactions lie with the respective banks. The number of free transactions from non-home ATMs is also reduced to three.
Following the guidelines SBI has announced their decision to levy charges for above 5 ATM usages a month, while the charges are not revealed. Other banks in both the public and private sectors are still to make decisions regarding this and are in a wait-n-watch mode.
Here are some tips for individual account holders to minimize their bank ATM usage and avoid payment on an ATM usage fee for exceeding the free usage limit.
Restrict ATM usage : Next time when you are about to withdraw a good chunk of money, use the teller’s service inside the branch instead of ATM.
Do not use ATM for mini statement or balance enquiry : Many people have the habit of using ATMs for checking the account balance or getting access to their account mini statement while on the go. And there can be many unwanted visits, especially if you have an ATM close to your office. While technology is making a convenient checking option at your finger tips, using Smartphones and tablets, isn’t it sensible to acoid this old habit? Instead of checking statement or account balance from an ATM get access to online or mobile banking for getting a complete insight into your account. People using Smartphone can install the official bank application of their bank and check their account balance and statement while on the move.
Avoid cash transactions : Try avoiding cash transactions wherever possible. Opting any from the multiple other methods of payments like using credit cards, debit cards, cheque or NEFT to make sure you limit the number of ATM transactions per month.
Withdraw higher quantum of cash per ATM visit : Since the number of free ATM transactions is limited to five per month for the home bank branch, it is a good idea to withdraw enough cash from the ATM that can manage your financial needs for at least a week.
