ATM Cash Withdrawals to become costlier from Jan 1; Know Details
Effective January 1, 2022, bank customers will have to pay Rs 21 per transaction instead of Rs 20. However, the fee will now be charged if they exceed the number of free monthly transactions, explained an RBI notification dated June 10, 2021.
Insight Bureau: Customers will now have to pay a higher amount of fees if they exceed the number of free ATM transactions. This is due to the Reserve Bank of India (RBI) allowing banks to hike fees for cash and non-cash ATM transactions beyond the free monthly permissible limit from January 1, 2022, onwards.
Effective January 1, 2022, bank customers will have to pay Rs 21 per transaction instead of Rs 20. However, the fee will now be charged if they exceed the number of free monthly transactions, explained an RBI notification dated June 10, 2021.
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The central bank has allowed banks to increase the fee for cash and non-cash ATM transactions beyond the free monthly permissible limit in order to compensate the banks for the higher interchange fee and the general escalation in costs.
“This increase shall be effective from January 1, 2022. Applicable taxes, if any, shall be additionally payable,” read the notification.
Customers will continue to get five free transactions, including financial and non-financial transactions, every month from their respective banks. Bank customers would also be able to perform three free transactions from other bank ATMs in metro centres and five free transactions in non-metro centres.
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