RBI Alert! Soon you will have to pay more for ATM cash withdrawal. Deets inside
Highlight
- ATM cash withdrawal fee to increase from January 1, 2022
- RBI allows banks to increase charges for cash and non-cash ATM transactions
- Customers will have to pay more if they exceed the limit for free ATM transactions
Increase in ATM cash withdrawal fee: Debit card or ATM holder? Then this news is for you. The Reserve Bank of India has announced that the cash withdrawal charges at ATMs will be increased with effect from January 1, 2022. All banks in the country are now allowed by RBI to increase the free monthly permissible charges for cash and non-cash ATM transactions. Limit for users.
Notably, in June, the Reserve Bank of India (RBI) allowed banks to increase the monthly permissible limit of charges for cash and non-cash ATM transactions from Rs 20 to Rs 21 per transaction with effect from January 1, 2022. As a result, customers will have to pay more if they exceed the limit for free ATM transactions.
Customers are eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (including financial and non-financial transactions) from other bank’s ATMs. Three transactions in metro centers and five transactions in non-metro centres. Apart from free transactions, there is a maximum limit of Rs 20 per transaction for customer charges.
In a circular issued earlier, RBI said, “In order to compensate banks for higher interchange charges and in view of the general escalation in cost, they are permitted to increase the customer charges up to Rs 21 per transaction. This increase is from January 1, 2022. will be effective.”
“As per RBI guidelines, financial transaction charges above the free limit at Axis Bank or other bank ATMs will be ₹21 + GST with effect from 01-01-22,” Axis Bank said.
Besides this, the central bank had also allowed banks to increase the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions across all centres. This was effective from 1 August 2021.
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