From July 1, new rules for withdrawing cash from ATMs will come into force. Otherwise you can say that the previous withdrawal guidelines will again be implemented. The central government had relaxed the withdrawal norms on 24 March because of lockdown and had made all transactions free from charges. Before the bank customers were allowed to make limited number of free transactions from bank ATMs beyond which they had to pay a minimal charge (As set by the bank) for every transaction they made. However, this relaxation was meant for 3 months i.e. from April to June and from 1st July the previous withdrawal norms will come into force.
The facility of unlimited free ATM transaction was introduced in order to stop people from visiting banks and thereby to provoke the spreading of COVID 19. This exemption included withdrawal of money from other bank ATMs too. Generally every bank provides few free transactions after which you have to pay a minimal fee. Let’s take SBI for an instance. In SBI, the savings account holders are allowed 8 free ATM transactions in metro which includes 5 SBI and 3 other bank ATM transactions whereas in non-metro, the customers are allowed 5-5 transactions from both SBI and other banks. Post that, the bank charges Rs.20+GST for cash and Rs.8+GST for non-cash transactions.
Now we might assume, how much the banks would be earning from this. If made a rough estimation, banks earn as much as 100s of Crore from the fess charged on ATM transactions. So eliminating the free limit of ATM transaction charges, makes a huge loss to the bank.