ATM cash withdrawal fees to increase From January 2022

ATM cash withdrawal fees to increase From January 2022

If you use up all of your free ATM transactions by January 1, 2022, you’ll have to pay a higher price. The Reserve Bank of India (RBI) has permitted banks to increase charges for cash and non-cash ATM transactions above the free monthly acceptable limit beginning January 1, 2022.

According to an RBI notification dated June 10, 2021, bank clients who surpass the monthly limit of free transactions would have to pay Rs 21 instead of Rs 20 per transaction starting January 1, 2022. Customers will, however, continue to be entitled for five free transactions per month from their own bank ATMs (including both financial and non-financial transactions). They’d also be able to make three free transactions from other bank ATMs in metro areas and five free transactions in non-metro areas.

RBI stated

“Customers are eligible for five free transactions (including of financial and non-financial transactions) from their own bank ATMs every month,” according to the RBI. They are also entitled to three free transactions (including financial and non-financial transactions) from other bank ATMs in metro areas and five free transactions in non-metro areas. The ceiling / cap on customer charges is Rs 20 per transaction, as defined by circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014. Banks are authorised to raise consumer charges to Rs 21 per transaction to compensate for the higher interchange fee and the general increase in costs. This raise will take effect on January 1, 2022. “Any applicable taxes, if any, shall be payed in addition,” the notification stated.

The increase has already been announced by banks

As on January 1, 2022, the ATM transaction charge rate above the free limit of Rs. 20 + taxes will be adjusted to Rs. 21 + taxes, according to the HDFC Bank website. At HDFC Bank ATMs, only cash withdrawal transactions will be assessed for charge.
“Effective 1st January 2022, financial transaction cost exceeding the free limit in Axis Bank or other bank ATMs will be INR 21 + GST,” according to the Axis Bank website.

Fees for transferring funds have increased

The central bank allowed banks to raise interchange fees per transaction in all centres from Rs 15 to Rs 17 for financial transactions and Rs 5 to Rs 6 for non-financial transactions starting on August 1, 2021.

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