ATM withdrawal charges depend on how many free transactions your account offers, whether you use your own bank's ATM and where another bank's ATM is located. The RBI's published FAQ sets a maximum charge of Rs 23 per transaction beyond the mandated free allowance, plus applicable taxes. That ceiling is not a charge for every cash withdrawal.
For a regular savings account, the RBI distinguishes your own bank's ATM from another bank's ATM. It also treats non-cash transactions differently in those two situations. Those distinctions explain why a balance enquiry can matter to one monthly allowance while remaining free under another.
| ATM used | RBI minimum monthly allowance |
|---|---|
| Own bank, any location | Five free financial transactions; non-cash withdrawal transactions free |
| Other bank, six specified metro locations | Three free financial and non-financial transactions |
| Other bank, non-metro location | Five free financial and non-financial transactions |
| Beyond the mandated allowance | Maximum Rs 23 per transaction, plus applicable taxes |
These figures were checked on 9 November 2026 against the RBI ATM and White Label ATM FAQ, which is marked updated on 4 July 2025. They are the published regulatory minimums and ceiling, rather than a statement that every bank account has an identical tariff.
How many ATM withdrawals are free each month?
At your own bank's ATM, a bank must offer its savings account holders at least five free financial transactions each month, irrespective of location. The RBI also says any number of non-cash withdrawal transactions at the bank's own ATMs must be provided free. A balance enquiry there should therefore not consume one of those five financial transactions.
The term on-us means the card and ATM belong to the same bank. Off-us means you use another bank's ATM or a White Label ATM. The name on the ATM matters when applying these categories; the branch where you opened your account does not turn another bank's ATM into an own-bank transaction.
For other-bank ATMs, the six metro locations in the FAQ are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi. The prescribed minimum is three free transactions a month, including financial and non-financial transactions. At other locations, the prescribed minimum is five, again including both kinds of transaction.
The metro classification concerns the ATM location. The RBI says installing banks should make that classification clear through a display, sticker, poster or another suitable means. A reader unsure about a particular ATM should check that indication and the account's published terms instead of classifying every large city as a metro.
Does checking an ATM balance count as a transaction?
At another bank's ATM, the free allowance includes non-financial activity. A balance enquiry can therefore use part of that allowance. At your own bank's ATM, non-cash withdrawal transactions such as a balance enquiry or cheque book request are excluded from the number of free ATM transactions.
Consider a purely illustrative month in which a customer uses another bank's ATMs only in one of the six listed metro locations. A balance enquiry followed by two cash withdrawals represents three transactions for the minimum allowance. A further transaction can fall outside that minimum, although the account may offer more free use.
Banks are allowed to provide a higher free allowance than the RBI minimum. Check the terms for your particular account before interpreting a debit as an error. A salary account benefit, for example, should be established from that account's current terms rather than inferred from a general description of savings accounts.
When can a bank charge Rs 23 for an ATM transaction?
The FAQ permits charges above the mandated number of free transactions and states that the charge cannot exceed Rs 23 per transaction, plus applicable taxes. It does not describe Rs 23 as a compulsory fee. The amount actually levied should be read against the bank's schedule and any higher allowance attached to the account.
For an arithmetic illustration, two chargeable transactions billed at the maximum base fee would cost 2 multiplied by Rs 23, or Rs 46, before applicable taxes. This example assumes both transactions are chargeable and that the bank uses the ceiling. It does not calculate a particular customer's bill.
The FAQ specifically excludes Basic Savings Bank Deposit Accounts from this free transaction prescription because their withdrawals are governed by the conditions for those accounts. It also says banks determine service charges for credit card cash withdrawals and ATM withdrawals abroad. The domestic savings account allowance should not be applied automatically to those cases.
Which failed ATM attempts should not consume free transactions?
The RBI excludes attempts that fail because of technical problems, unavailable currency and other specified declines, including invalid PIN or validation failures, from valid ATM transactions for this purpose. It says no charges should be levied for those excluded attempts. Keep the transaction record if your statement appears inconsistent with that rule.
Use the date, ATM location and statement entry when asking the bank to explain a charge. For a separate service dispute, our RBI Ombudsman complaint guide explains escalation. Readers comparing account conditions can also consult our bank nomination guide and NEFT and RTGS explainer. Those services have their own rules and should be checked separately.
