Introduction

In the latest financial related news, PNB customers will have to shell out money beginning October if they carry out more than five transactions a month from the bank’s ATMs. At present, account holders of the country’s second largest public sector bank can make any number of transactions in a month, financial or non-financial, at the bank’s ATMs without attracting any charge.

“The number of free transactions and the charges beyond these free transactions for PNB customers on PNB ATMs have been revised.

The revised charges will be effective from October 1, 2017,” Punjab National Bank (PNB) said in a notice to customers.

The bank said savings fund/current/overdraft account holders would all attract charges at Rs.10 per transaction beyond a limit of five times a month even if the PNB card holder makes the transaction at PNB ATM only. Thus, customers will be charged beyond free limits for doing financial transaction where cash withdrawal is being made through ATM and non-financial transaction for issue of mini-statement.

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However, PNB said there will not be any charge for other non-financial transactions like balance enquiry, fund transfer or green pin request where a secret pin code is sent on mobile phone to facilitate money transactions like for an online purchase, money transfer via phone etc.

In August 2014, Reserve Bank had rationalized the number of free ATM transactions that customers could do at own and other bank ATMs.

For own bank ATM transactions, RBI had advised banks to give at least five free transactions (financial and non-financial) a month on savings accounts at all locations.

“Beyond this, banks may put in place appropriate Board approved policy relating to charges for customers for use of own bank ATMs,” RBI had said.

While for other bank ATM transactions, banks were allowed to cut the number of free transactions from five to three a month in six metros– Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad.

For other locations, number for free transactions were kept unchanged at five a month for other ATM withdrawals.

“Nothing, however, precludes a bank from offering more than three free transactions at other bank ATMs to its account holders if it so desires,” RBI said.

The regulator has capped the maximum charge banks can levy beyond the number of free transactions to not more than Rs.20 per transaction.

Conclusion

So banks have devised their own mechanisms to charge for ATM transactions beyond free within RBI limits. Country’s largest lender SBI charges from Rs.5-20 for financial and non-financial transactions beyond the stipulated free transactions a month for both own and other ATM transactions,

While private lender Yes Bank gives own ATM transactions service free to cost to its customers for any number of transactions a month.

On the other hand, country’s largest private sector ICICI Bank allows five free transactions a month and thereafter levies Rs.20 per financial transaction and Rs.8.50 per non-financial transaction.

FAQs

1. What is the new ATM transaction policy for PNB customers?
   • Starting October 1, 2017, Punjab National Bank (PNB) will charge Rs. 10 per transaction for both financial and non-financial transactions if customers exceed five transactions per month at PNB ATMs.
2. Which transactions will incur charges beyond the free limit at PNB ATMs?
   • Charges will apply to both financial transactions (such as cash withdrawals) and non-financial transactions (like issuing a mini-statement) if they exceed the five free transactions per month.
3. Are there any transactions at PNB ATMs that will remain free?
   • Yes, non-financial transactions such as balance inquiry, fund transfers, and green pin requests will remain free even if they exceed the five-transaction limit.
4. How do the ATM charges of PNB compare to other banks?
   • Different banks have different policies. For example, SBI charges Rs. 5-20 for transactions beyond the free limit, Yes Bank offers free own ATM transactions, and ICICI Bank charges Rs. 20 for financial transactions and Rs. 8.50 for non-financial transactions beyond the free limit.
5. Are the charges applicable at other banks’ ATMs?
   • PNB’s charges apply only to transactions at PNB ATMs. Charges for using other banks’ ATMs are subject to each bank’s own policy.
6. What is the RBI’s stance on ATM transaction charges?
   • RBI mandates that banks provide at least five free ATM transactions per month for savings accounts at their own ATMs. For other banks’ ATMs, RBI has allowed up to three free transactions in major metros, while non-metro locations can have up to five free transactions.
7. Can banks charge more than the prescribed limits for ATM transactions?
   • No, the RBI caps the maximum charge for transactions beyond the free limit to Rs. 20 per transaction.
8. Why is PNB introducing ATM transaction charges?
   • The revised charges are in line with the RBI’s guidelines for banks to introduce their own policies regarding charges for ATM transactions beyond the free limit.
9. How can I avoid ATM transaction charges at PNB?
   • To avoid charges, you can limit your ATM transactions to five or fewer per month at PNB ATMs, or opt for free non-financial transactions.

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