Failed ATM Transaction Due To Insufficient Fund Attracts Penalty. Know How Much Your Bank Charges You!

In absence of sufficient balance for transaction, the bank charges you if the transaction is failed through the ATM. This charge can go up to Rs 20-25 per transaction.

Representational Picture (AFP)

New Delhi: Did you know that in case of a failed transaction at the ATM due to insufficient fund may attract charges? There are several transactions that customers happen to do at the ATM besides withdrawal of money. Some of these services are free, but some transactions attract charges.

It also happens that customer forgets to take note of the balance in account before withdrawal of money. For example if you have Rs 3,000 in account and you may want to withdraw Rs 3,500 from the ATM, the transaction is failed in absence of sufficient fund. Remember, if there is not enough balance, the bank charges you for the failed transaction through the ATM. This charge can be up to Rs 20-25 per transaction. This rule of ATM transaction has come into effect from December 2020. Hence, it becomes pertinent to check the balance in your account before you press the option to withdraw money.

Also, note that charges vary from banks to banks. Here are what banks charge customers for the failed transaction at ATM.

How much bank charge for the failed transaction?

SBI Bank: The largest public lender has to pay a penalty of Rs 20 in case of ATM Failed transaction due to insufficient balance. Also note that a separate GST will be be levied.

HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank and ICICI Bank are also charging the customer on account of failed transaction due to low account balance.

In HDFC Bank, transactions declined at other Bank ATMs anywhere in the world or at a Merchant outlet outside India due to insufficient funds will be charged at ₹25 per transaction (plus taxes as applicable). Kotak Mahindra Bank, Axis Bank and Yes Bank Kotak Mahindra Bank charges Rs 25 for the ATM transaction failure.

ICICI Bank also charges the same amount for decline of the transaction at other bank ATMs or point of sale (POS) due to insufficient balance.

How to avoid payng the fine?

The simple thing is to check your balance in the account prior to any transaction at the ATM. Most banks offer the facility of checking account balance through SMS and calls. You can use this facility. You can also use UPI app or banking app of the concerned bank to check account balance.

While you may also have to pay a nominal charge for balance check at another bank's ATM. Most banks offer 5 to 8 transactions to customers of other banks for free. These include non-financial transactions ie balance checks. If you have used this facility, do not even make a balance check at the ATM of another bank. After the fixed limit, SBI charges Rs 8 for non-financial ATM usage. GST is also applied on this.