What are the charges for cash withdrawal from a bank?

Cash Withdrawal Charges from Banks

Cash withdrawals from automated teller machines (ATMs) beyond the specified limits incur a fee. As per the mandate of the Reserve Bank of India (RBI) to offset rising costs, banks are permitted to charge ₹21 per transaction.

Typically, banks allow five complimentary ATM withdrawals per month. Exceeding this limit results in the application of the withdrawal fee. The fee is applicable to both debit card and ATM card withdrawals.

In addition to the RBI-mandated fee, some banks may also impose additional charges for cash withdrawals from ATMs operated by other banks. These charges vary depending on the bank and the specific ATM location.

It is important to note that the withdrawal fee may apply even if you are withdrawing cash from your own bank’s ATM, if you have exceeded the monthly limit of complimentary withdrawals.

To avoid incurring withdrawal fees, it is advisable to plan your cash needs accordingly and make withdrawals within the specified limits. Alternatively, you can consider using other methods to access cash, such as mobile banking or online banking.

Some banks offer the option of setting up a “cash withdrawal limit” on your account. This limit can help you avoid accidental over-withdrawals and the associated fees.

By understanding the charges for cash withdrawals, you can make informed choices and manage your banking expenses effectively.