India’s second largest public sector bank Punjab National Bank (PNB) has now limited the number of free monthly ATM transactions to five. Starting from October 2017, customers of PNB can have only five free ATM transactions in a month. Beyond the limit of five transactions in a month, a charge of Rs.10 will be applicable for every single additional transaction. For other ATM withdrawals, PNB will continue to offer five free transactions for its customers.
Till date, PNB customers have free access to use the bank’s ATMs for any number of transactions. In a notice to customers, PNB announced the cessation of unlimited free access to ATMs. While extra charges are about to be levied on cash withdrawals, the bank announced that there will be no additional charges for non-financial transactions like balance enquiry, statement request, fund transfer, or green pin request.
According to the guidelines provided by the Reserve Bank of India (RBI), banks are advised to provide at least five free transactions in their own ATMs for customers of savings, current, or overdraft accounts. RBI has also notified that banks must not charge more than Rs.20 per transaction for all transactions exceeding the free transaction limit.
India’s largest public sector bank SBI also offers five free ATM transactions for all its account holders. Unlike PNB, SBI has limited the number of non-financial transactions for its customers. ICICI, one of the largest private sector banks in India, has also limited its free monthly ATM transactions to five. Beyond the allowed limit, ICICI charges Rs.20 for financial transactions and Rs.8.50 for non-financial transactions.