Come January 1, ICICI Bank customers will no longer enjoy unlimited free transactions at the bank’s ATMs. India’s biggest private sector bank will cap the number of free transactions, financial and non-financial, at its own ATMs at five a month.
Beyond the five free transactions, ICICI Bank will charge ₹20 (exclusive of service tax) per financial transaction and ₹8.50 (exclusive of service tax) for a non-financial transaction.
From January 1, 2015, the bank will charge its customers transacting at other bank ATMs if they exceed the monthly limit of three free transactions in the metros (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) and five free transactions in non-metros. The charges will be the same as mentioned above.
As of now, ICICI Bank customers get five free transactions a month at other bank ATMs. This is irrespective of whether the ATM is a metro or a non-metro ATM.
From November 1, India’s largest bank, State Bank of India, capped the number of free monthly ATM transactions at other bank ATMs for customers maintaining savings bank account balances of up to ₹1 lakh at three in the metros and six in non-metros.
There is no such transaction cap for customers maintaining balances above ₹1 lakh.
SBI said one-way inter-changeability is allowed between branch transaction and ATM transaction. It means a customer will be allowed nine free transactions at State Bank Group’s ATMs if he does not visit the branch at all during a month or eight free ATM transactions if he visits the branch once, and so on.
After taking into account the high density of ATMs, bank branches and alternative modes of payment available to customers, the RBI has allowed banks to reduce the number of mandatory free ATM transactions for savings bank account customers at other bank ATMs from five to three transactions per month for transactions done at ATMs located in the six metro centres, with effect from November 1, 2015. However, a bank can offer account holders more than three free transactions at other bank ATMs, if it so desires.
At locations other than the six metro centres, the present facility of five free transactions for savings bank account customers continues unchanged. The Indian Banks’ Association had sought the removal of free transactions at other banks’ ATMs in metro centres and other large townships in the country, citing the growing cost of ATM deployment and maintenance incurred by banks, on the one hand, and the rising interchange outgo because of these free transactions.