Canara Bank slashes free ATM withdrawals to 5, imposes Rs 23 fee

Canara Bank has revised its automated teller machine (ATM) withdrawal policy, cutting the number of free transactions to five per calendar month. Customers exceeding this threshold will now face a withdrawal fee of Rs 23 per transaction, a significant increase from previous charges.

The fee structure reflects growing operational costs faced by banks in maintaining extensive ATM networks across the country. While withdrawal charges have risen, the bank has maintained its levy for non-financial transactions, such as balance inquiries and PIN changes, at Rs 5 plus applicable goods and services tax (GST) beyond the free limit.

The revised policy underscores a broader industry trend of rationalising complimentary banking services as financial institutions grapple with rising infrastructure and maintenance expenses. Banks across India have increasingly adjusted their ATM usage policies over recent years to balance customer convenience with operational sustainability.

Customers of Canara Bank are advised to review their ATM usage patterns and plan accordingly to minimize additional charges. The bank has not announced any transitional period for the new policy implementation, suggesting immediate applicability across its ATM network.