ATM Cash Withdrawal to Become Costlier from Next Year : Know Details
ATM Cash Withdrawal to Become Costlier from Next Year : Know Details
RBI has permitted banks to boost charges on cash and non-cash ATMs beyond the free monthly limitations
Bank customers will have to pay extra charges for withdrawal of cash at ATMs across the country starting next month.
Customers are already being notified of this move by banks. However, all bank customers with debit cards will be eligible for five free transactions (cash or non-cash transactions) at their own banks’ ATMs per month.
Additionally, they will be eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities.
The Reserve Bank of India (RBI) has permitted banks to boost charges on cash and non-cash ATMs beyond the free monthly limitations.
In a previous notification in June 2021, the Reserve Bank of India stated that after the limit is exceeded, users will be charged even greater fees for ATM transactions beginning in January 2022.
New ATM cash withdrawal charges from 1 January 2022
Starting 1 January 2022, customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed the monthly limit of free transactions.
" To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction.
This increase shall be effective from January 1, 2022," the RBI had said in a circular.
HDFC Bank and Axis Bank notify customers about new rule
A few banks, including HDFC Bank and Axis Bank, have updated their website with the new notification.
“ With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable," says the HDFC Bank website.
According to the Axis Bank website, “Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST."
