Cash withdrawals from ATMs will get costlier from Jan
Cash withdrawals from Automated Teller Machines (ATM) are set to become slightly heavier on the pocket from January as the Reserve Bank of India (RBI) announced new rules for users exceeding their monthly free transactions. The per transaction rates are now revised by the RBI.
The charges have been increased given the rising cost of ATM deployment and expenses pertaining to ATM maintenance.
Bank customers are eligible for five financial and non-financial free transactions from their own bank ATMs. Beyond these free monthly limits, ATM transactions are set to get costlier on cash and non-cash ATMs.
However, customers will be eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities.
The RBI had notified about the changes in June this year. RBI said in a circular, “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 Rs.21 plus taxes per transaction. This increase shall be effective from January 1, 2022.”
Some banks have already notified their customers about the fee hike for exceeding monthly free transactions at ATMs.
According to the HDFC Bank website “With effect from 1st January 2022, ATM transaction charge rate beyond the free limit of Rs.20 + taxes would be revised to Rs.21 + taxes, wherever applicable”.
Axis Bank website said, “Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be Rs.21 + GST.”
After a gap of seven years, the RBI had increased the transaction limit in August 2021. The charges payable by customers were last revised in August 2014.
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