How cash withdrawals from ATMs will get more expensive from next month
Bank customers will have to pay additional fees for withdrawing cash from ATMs across the country starting next month. Customers are already informed of this decision by the banks. However, all bank customers with debit cards will be entitled to five free transactions (cash and non-cash transactions) at their own bank’s ATMs per month. In addition, they will be entitled to three free transactions with other banks in metropolitan cities and five free transactions in non-metropolitan cities.
The Reserve Bank of India (RBI) has allowed banks to increase fees on cash and non-cash ATMs beyond the free monthly limits.
In a previous notification in June 2021, the Reserve Bank of India said that once the limit is exceeded, users will be charged even higher fees for ATM transactions from January 2022.
New fees for withdrawing cash from ATMs from January 1, 2022
As of January 1, 2022, customers will have to pay ??21 per transaction, instead of ??20 if they exceed the monthly limit for free transactions. “To compensate the banks for the higher interchange fees and in view of the general escalation of costs, they are allowed to increase the fees for customers to ??21 per transaction. This increase will be effective from January 1, 2022, “the RBI said in a circular.
HDFC Bank and Axis Bank inform their clients of the new rule
A few banks, including HDFC Bank and Axis Bank, updated their websites with the new notification.
“As of January 1, 2022, ATM transaction fees beyond the free limit of Rs. 20 + tax would be revised to Rs. 21 + tax, if applicable,” says the HDFC Bank website. .
According to Axis Bank’s website, “As of January 1, 2022, financial transaction fees above the free limit in Axis Bank or other ATMs will be INR 21 + GSTâ€.
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