- Cash withdrawal charges on ATMs will hike from January 1, 2022
- RBI allows banks to increase the charges for cash and non-cash ATM transactions
- Customers will have to pay more if they exceed the free ATM transaction limit
ATM cash withdrawal charges hike: Are Debit card or ATM holders? Then this news is for you. The Reserve Bank of India has announced that the cash withdrawal charges on ATMs will be hiked from 1 January 2022. All banks in the country are now allowed by the RBI to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users.
Notably, in June, the Reserve Bank of India (RBI) had permitted banks to increase charges for cash and non-cash ATM transactions beyond the free monthly permissible limit from Rs 20 to Rs 21 per transaction, with effect from January 1, 2022. Resulting, customers will have to pay more if they exceed the free ATM transaction limit.
Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling/cap on customer charges is Rs 20 per transaction.
The RBI, in a circular, issued earlier, said, “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 per transaction. This increase shall be effective from January 1, 2022.”
“In line with the RBI guidelines, the financial transaction fee above the free limit in Axis Bank or other bank ATMs will be ₹21 + GST w.e.f. 01-01-22,"said Axis Bank.
Apart from this, the central bank had also allowed the banks to increase interchange fees per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres. This was with effect from 1 August 2021.
ALSO READ | Cryptocurrency: Why is the government worried?