How to reduce bank ATM charges?

If you have a habit of heading to automated teller machines (ATM) every now and then, you may have to alter your behaviour.
Starting this month, only five ATM transactions at your own bank ATM and three at other bank ATMs would come free of cost for metro residents.
If you exceed these eight trips – be it for withdrawing cash or merely account balance check – you would have to pay additional charges.
A bank can charge up to Rs 20 per additional transaction in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad. You need not fret if you have a no frills bank account, as these limits aren't applicable.
Here's what you can do to avoid ATM charge.

Check your bank's plan
While the ground rules have been laid by the RBI, the final decision to implement rests with the bank. State Bank of India announced it would offer all transactions at its own ATM network free provided a consumer maintains an average monthly balance (AMB) of Rs 25,000. Those who maintain an AMB of more than Rs 1 lakh can access SBI's own and other bank ATMs free of cost.
Similarly, various charge structures are applicable for non-financial transactions beyond the five free transactions. For non-financial transactions, getting a mini statement or checking your balance, SBI will charge Rs 5 to 8 a transaction, while HDFC Bank would charge Rs 8.5.

Increase card limits
If you are allowed to withdraw only Rs 10,000 per transaction, head to your bank branch and fill up a form for increasing the limit per withdrawal.
But ensure you don't increase it substantially as any loss in the form of fraudulent transaction would be much higher.

Travelling to small towns, withdraw there
What if you have exhausted your limit for the metro geographies, but are travelling to a smaller town. Well, you could cash in some savings as RBI has clarified that, "Number of free transactions in a month at non-home ATMs would remain three in six identified metros but customers of these centres can use their card without cost two more times in non-metro centres."

Internet banking
Use technology offerings of banks for all the non-financial and select financial transactions. For instance, downloading a mini account statement or a checking the balance is easier done via SMS or internet banking. This would be free.

Download mobile banking apps
Several banks have launched their mobile banking apps. If you haven't downloaded it already, get going now. You could even earn a hamper or a discount voucher. But weigh the cost to reach the ATM versus the ATM charge.

Don't head to the branch
Don't just rush to the bank branch for withdrawals. If the number of cash transactions at branches shoots beyond a set limit, the bank would slap charges. Axis Bank allows first five cash transactions per month at its branch free, post which you need to shell out Rs 100 per transaction. ICICI Bank too allows first four cash transactions free, after which it charges Rs 90 per transaction. If you are transacting from another city then only the first transaction is free. Also, you need to keep a check on the number of debit entries in your account. Bank of India allows 10 customer-induced debit entries in a month free and beyond that charges Rs 10 per entry. SBI too has put a cap of 30 debit entries half yearly, beyond it charges Rs 5 per entry.

Stash cash at accounts you hardly use
Make sure you keep a couple of other bank accounts active. You can even revive dormant accounts. Ensure these are no frills or zero balance accounts to avoid funds lying idle. Also, the bank branch or ATM should be close to either your house or your workplace.

Planning
You might lose 4-6% as savings bank interest if you just hoard more cash at home. So keep a check on the past months expenses and withdraw accordingly. Pay off bills using ECS or internet banking, use debit cards for purchases at malls. However, be wary of additional charges slapped by merchants on card payments by way of surcharge or transaction fee.