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| - Fact Check: You won't be charged extra for ATM transactions from June 1
A Facebook post is doing the rounds claiming that from June 1, banks will charge us Rs 173 in taxes and service charges for every money withdrawal from an ATM beyond four transactions. India Today Anti Fake News War Room (AFWA) has found that the viral claim is misleading.
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India Today Fact Check
RBI rules say banks can charge customers not more than Rs 20 per transaction for ATM transactions over the free limit per month. For every cash transaction, few private banks started charging at least Rs 150 beyond four transactions in a month, but it’d begun in 2017. There has been no change in rule.
In these difficult times, brought about by the pandemic, it is imperative upon us to save every penny that we have earned. None of us would want to be overburdened by extra taxes imposed by the government directly or indirectly.
However, a Facebook post doing the rounds claims that from June 1, banks will charge us Rs 173 in taxes and service charges for every money withdrawal from an ATM beyond four transactions.
Several Facebook users have posted an image graphic in Hindi which translates to, “Achhe din has started. Withdrawing money more than four times will invite a tax of Rs 150 and a service charge of Rs 23, which comes to a total of Rs 173. One more gift! From June 1, every bank transaction after four transactions will cost you Rs 150 more. Why don’t you slit people’s throats for once and all? Taxes on earnings, savings, bank deposits, and even if you want to withdraw your own money.”
India Today Anti Fake News War Room (AFWA) has found that the viral claim is misleading. RBI guidelines say that banks can charge customers not more than Rs 20 per transaction for ATM transactions over the free limit per month. For every cash transaction, few private banks started charging at least Rs 150 beyond four transactions in a month, but it had begun in 2017. There has been no change in rule.
What do RBI rules state?
As per RBI guidelines, customers can be charged not more than a maximum of Rs 20 per transaction (plus applicable taxes, if any) by his/her bank for transactions at ATMs over and above the mandated number of free transactions.
According to the apex bank, for transactions at a bank’s own ATM, they should offer savings bank account holders a minimum of five free financial transactions in a month. For transactions at other banks’ ATMs at Metro locations, banks shall offer savings account holders a minimum of three free transactions in a month. For non-metro locations, it is a minimum of five free transactions per month.
In 2017, some private banks such as Axis, HDFC and ICICI had begun charging a minimum amount of Rs 150 per transaction for cash deposits and cash withdrawals beyond four free transactions in a month. This was reported that time by multiple news organisations which can be found here and here.
According to an HDFC notification on cash transaction charges, which was effective from March 1, 2017, a customer can make four free cash transactions from the bank in a month. From the fifth transaction onwards, a charge of Rs 150 per transaction (plus taxes) will be levied.
Recently, the State Bank of India (SBI) has revised its rules for cash withdrawals from its ATMs and branches and cheque book charges for basic savings bank deposits (BSBD) account holders. As per news reports, this will be effective from July 1, 2021.
But there is no change in the charges for ATM transactions or for cash transactions in banks from June 1. Hence, the Facebook claim is misleading.
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