After private banks – HDFC Bank and Axis bank – decided to charge own customers for more than five transactions at their ATMs, public sector lender Union Bank of India has also joined the bandwagon.
The Mumbai-based bank will charge own customers for more than eight transactions per month at its ATMs and more than five at other banks ATMs.
It will be charging Rs 15 per (excluding tax) from November 15, 2014.
Many public sector banks are still in "wait and watch mode". They would like to see how pricing is firmed up by the private banks and large state-owned banks.
HDFC Bank and Axis Bank will charge their own customers for more than five transactions at their Automated Teller Machines starting 1 December.
HDFC Bank will be charging Rs 20 for financial transactions and Rs 8.5 (excluding taxes) for non-financial transactions (balance enquiry, mini statement). Axis Bank will be charging Rs 20 (excluding taxes) for financial transactions and Rs 9.5 for non-financial transactions
At other bank ATMs, the customers of these banks will be charged beyond three transactions. Earlier five transactions were free at non-home bank ATMs.
However, Axis Bank has made ten transactions free for its Prime Plus Savings Account and Prime Salary account holders. These account holders are mandated to have a minimum opening balance of Rs 1 lakh.