Useful Tips To Use ATM Effectively

Life in a metropolitan has always been a challenge. Apart from the regular rigmarole, now residents must also face another issue. The apex bank of India – R.B.I. issued new policy regulations, pertaining to the provision of A.T.M. services by financial institutions in 6 metropolitan cities (Delhi, Kolkata, Bengaluru, Hyderabad, Chennai and Mumbai).

The number of free transactions has been effectively reduced and has thus caused a furore amongst the regular consumer group. This will impact largely that group who have a habit of frequenting the ATMs.

The New Rule:

  • Metropolitan ATM users to be allowed 5 transactions free of charge from own bank ATMs.


  • The number of free transactions from other than own bank ATMs reduced to 3 per month.


  • The above limits will include transactions such as PIN change, cash withdrawals, balance check and mini statements.

Reasons behind the new policy:


  • They form a major part of the operating expenses of a banking institution inspite of their integral role in the financial services sector. Security guards, security cameras as well as other expenses are costs which is together a burden will now find a share from the user as well.


  • Instead of being a source of emergency cash or easy cash access, ATMs have become a kind of personal wallet to the consumer with numerous small value transactions.


  • This is also being done to change the culture of the average user. This is being done to increase online transactions, branch footfall as well as the use of plastic money.

Impact of the policy and tips to save ATM charges:

  • Use debit cards more at merchant point of sale. Increased swiping will not only mean higher cash balance for emergency needs, it will also mean higher free transaction balance when the need is extreme.


  • One should withdraw more cash at a time by maybe taking stock of fortnightly or weekly needs. The amount withdrawn should include a buffer for unforeseen outflows.


  • A disciplined approach should be adopted by cutting out transaction such as FD booking, PIN change and balance checks. One can easily adopt SMS, internet, mobile and IVR channels for such non financial transactions.


  • Use the mobile application of your bank which is a common feature with most major banks. These provide a plethora of services at your finger tips without the hassle of keeping track of the count of free transactions.

The R.B.I. guidelines later stated that they have specified the minimum number of transactions and hence banks are expected to provide HNI customers with higher limits.

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