Canara Bank ATM charges: Free limit cut to 5, withdrawal fee now Rs 23 | Personal Finance

Canara Bank has cut the number of free ATM transactions for regular savings account holders from six to five a month, while raising the charge for cash withdrawals beyond the free limit to Rs 23 plus GST from Rs 20.

 

The bank has also increased the fee for ATM transactions declined due to insufficient funds. The charge has risen from Rs 17 plus GST to Rs 23 plus GST. The revised charges took effect on September 1, 2026.

 

There is no change in the eight free ATM transactions a month available to senior citizens. The charge for non-financial transactions beyond the free limit also remains at Rs 5 plus GST.

  

What has changed in Canara Bank ATM charges?

The revised charges, effective from September 1, are:

 

 

The five-transaction limit covers both financial and non-financial transactions at Canara Bank ATMs and cash recyclers, according to the bank’s revised service-charge schedule.

 

Free ATM transactions reduced from six to five

The most important change for regular savings account holders is the reduction in the free transaction limit.

 

Earlier, customers could make six transactions in a calendar month at Canara Bank ATMs without paying the applicable charge for transactions beyond the free limit. This has now been reduced to five.

 

The limit covers both financial and non-financial transactions. Therefore, customers need to keep track of all eligible ATM transactions rather than only counting cash withdrawals.

 

For example, if a customer makes five eligible transactions during September, any subsequent transaction that falls under the chargeable category can attract the applicable fee.

 

There is no change for senior citizens. They continue to get eight free transactions in a calendar month at Canara Bank ATMs.

 

Cash withdrawal beyond free limit now costs Rs 23 plus GST

Canara Bank has increased the charge for financial transactions beyond the free limit.

 

A cash withdrawal at a Canara Bank ATM now attracts a charge of Rs 23 plus GST, compared with Rs 20 plus GST earlier. The revised charge also covers ICCW, or UPI cash withdrawal, transactions.

 

This means customers who have exhausted their monthly free transaction limit will pay more for subsequent chargeable cash withdrawals.

 

The increase is relevant for customers who frequently rely on ATMs for cash. While Rs 3 may appear small, repeated chargeable transactions can add to banking costs over the year.

 

Failed ATM transactions can also cost Rs 23 plus GST

Customers should also be careful about attempting withdrawals when their account does not have sufficient funds.

 

Under the revised charges, an ATM transaction that is declined because of insufficient funds attracts Rs 23 plus GST, up from Rs 17 plus GST earlier, once the applicable free transaction limit has been crossed.

 

The charge applies to transactions at Canara Bank ATMs as well as other bank ATMs, according to the bank’s updated schedule.

 

This makes it important to check the available account balance before making a withdrawal, particularly if the monthly free ATM transaction limit has already been used.

 

Non-financial ATM transactions remain at Rs 5 plus GST

Not all ATM charges have increased.

 

The fee for non-financial transactions beyond the free limit remains Rs 5 plus GST at Canara Bank ATMs. Such transactions can include certain non-cash services such as balance enquiries.

 

Customers who have exhausted their free limit should therefore consider using mobile or internet banking for routine services such as checking their account balance, where available.

 

What if you use a Canara Bank card at another bank’s ATM?

 

The free transaction rules for other-bank ATMs are separate.

 

For Canara Bank debit card holders, the applicable free limit at other bank ATMs continues to depend on the location. Customers get three free transactions a month at other-bank ATMs in metro locations and five free transactions in non-metro locations, subject to applicable rules.

 

Therefore, the reduction in Canara Bank’s own ATM free limit from six to five should not be interpreted as a blanket five-transaction limit for every ATM transaction.

 

Green PIN regeneration gets cheaper

 

There is one positive change in the revised schedule.

 

Canara Bank has reduced the charge for Green PIN regeneration beyond the free transaction limit from Rs 23 plus GST to Rs 5 plus GST for eligible card variants, including Classic, Standard, Platinum, Business, Select and World cards.

 

How customers can avoid ATM charges

 

For customers who use ATMs regularly, a few simple changes can help reduce unnecessary fees:

 

Keep track of ATM transactions during each calendar month.

 

Avoid making separate cash withdrawals when one larger withdrawal can meet your needs.

 

Check your account balance before attempting a withdrawal.

 

Use mobile or internet banking for routine non-financial services where possible.

 

Check whether your transaction has already crossed the applicable free limit before using an ATM.