New Delhi: The Reserve Bank of India has announced that the cash withdrawal charges on ATMs will be slightly heavier on the pockets of users if they surpass the monthly limit of free transactions on their debit or credit cards.
The Reserve Bank of India in June has announced that the banks in the country are now allowed to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users. This change in the rates will come into effect from January 1, 2022.
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 Rs 21 + GST w.e.f. 01-01-22,” said Axis Bank.
Starting next month, customers will have to pay Rs 21 per transaction, instead of Rs 20 if they exceed the monthly limit of free transactions. “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,” the RBI had said in a circular.
Customers will continue to be eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They would also be able to do three free transactions from other bank ATMs in metro centres and five in non-metro centres.
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.