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How to Reduce ATM Transaction Charges in India

reduce atm charges

The current rules on ATM charges in India came into effect from November 1, 2014, which allows only five ATM transaction in home bank’s ATM and three from other bank’s ATM in a month. Besides, there will be charges levied on any transaction beyond the stipulated limit.

Although the above limit applies to the metro cities alone, while non-metro cities will continue to have five free transactions in other bank’s ATM, it’s somewhat difficult for people to restrict their ATM transaction to three times a month in order to avoid the prescribed ATM charges.

However, it’s not that difficult if you can try the following ways to reduce ATM transaction charges. All you need is just change some habits with regards to your financial transaction needs.

Plan Your Weekly Expenses

Write down the potential expenses for the week and withdraw an amount which can fairly cover the expenses. Preferably, the amount should be slightly higher than planned expenditure for the week and is better withdrawn at once. Having extra cash in the wallet will save you from rushing to other bank’s ATM for cash withdrawal.

Keep Cash For Emergency

Keep yourself ready for unforeseen expenses. Have some cash with you or at home in case you run out of money at some point or the other. Although, it’s not advisable to keep a big amount at home as it loses out the interest, it’s your call to plan it properly in order to withstand the emergency.

Swipe Your Card for Payments

While shopping at malls or buying goods and services from commercial stores, swipe your debit card for payments. Cashless transaction like this reduces your tendency to withdraw cash every now and again. Thereby helps you reduce unnecessary ATM charges. But if you are using a credit card, make sure you use it wisely.

Avoid Cash Transaction if Possible

If you are one of those who use cash for each and every payment or transaction, you really need to change the habit in order to reduce your ATM charges. Instead of cash, Use electronic fund transfer, cheques, drafts to make payments and explore different platforms that allow cashless transaction

Use Net Banking, App, or Phone Banking

More you depend on cashless transaction; the more successful you are in reducing ATM charges. There are different channels that can be used for carrying out financial transaction without cash. Register for net banking or mobile banking to have a convenient access to your account and money. You can also download bank’s phone banking app for this purpose. However, while using such technologies make sure you follow the best practices and stay updated to avoid any financial fraud.

Avoid Using ATM for Balance Inquiry

Don’t use ATMs for non-financial transaction such as balance inquiry, PIN change, mini statements etc. As per the latest ATM charges guidelines, such transactions are also considered as ATM transactions. The cap on ATM usage includes both financial and non-financial transaction and charges apply when it crosses the stipulated number.

Visit Your Own Bank Branch

In case your monthly ATM visits have reached the limit, visit your own bank for further financial transaction if you are not comfortable with online stuff. Even when you are withdrawing a large amount of cash, it’s always better to visit the bank rather than ATMs. But again it’s up to your choice and convenience.

Use Smartphone to Locate Your Bank’s ATM

When there is no other option, you can go for other bank’s ATM. But before you do it in hurry, try to locate the nearest ATM of your home bank. Use the bank’s app or Google search on your smartphone and take a chance up on it. Who knows you can ultimately find one close to you.

Don’t Withdraw Smaller Amounts

Withdrawing smaller amounts can increase the frequency of ATM transaction. Therefore, make sure the withdrawal covers the expenses of a week at least.

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