These 3 banks are offering unlimited free transactions - Check names here

The Reserve Bank of India (RBI), on the recommendations of a committee, has allowed banks to hike ATM transaction charges on customers after they exhaust their free limits. Banks will now be able to raise ATM transaction charges from August 1, 2021.

The RBI released a circular on Thursday, allowing banks to hike interchange fees per transaction through ATMs and non-financial transactions as well. The RBI noted that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014.

However, there are three private banks operating in the country, which are offering unlimited free ATM transactions to their customers. These banks are IndusInd Bank, IDBI Bank, and Citi Bank.

IDBI offers customers free unlimited transactions at its own ATMs and five free transactions at other ATMs. IndusInd Bank offers unlimited free ATM transactions at any bank ATM in India. However, Citi Bank is wrapping up its operations in India soon.

Changed ATM transaction charges

The increased interchange fee per transaction from August 1, 2021, will be Rs 17 from Rs 15 for financial transactions. 

An interchange fee is an amount that a card-issuing bank pays to ATM operators in case its customer uses an ATM that does not belong to it.

Currently, most of the private and public banks in India allow three to five free ATM transactions in urban cities and towns.

In rural areas, however, private and public banks allow up to five free ATM transactions.

The fees charged on cash withdrawal have been increased from Rs 20 to Rs 21.

The central bank has also allowed an increase in non-financial transactions from Rs 5 to Rs 6 in all centres.

Customers have also been allowed three free transactions from ATMs of other banks in metro cities and five transactions in non-metro cities.