ATM Cash Withdrawals to Get Costlier from Next Month. Know How Much You Need to Pay

ATM Cash Withdrawals to Get Costlier from Next Month. Know How Much You Need to Pay


ATM Withdrawal Alert: Bank customers with a credit or debit card from next month will be entitled to pay additional fees for cash withdrawals at ATMs across the country once their limit for withdrawing money from ATMs at their banks is exhausted. . The Reserve Bank of India, in a previous notification, had said that customers will have to pay even more charges from January 2022 for ATM transactions once the limit is exceeded. Banks are already reporting this change to remind customers. ATM transactions are expected to be more costly because the RBI had allowed banks to increase cash and non-cash ATM charges beyond the free monthly limits.

Once the change is implemented, customers will have to pay 21 rupees per transaction at their banks ’ATMs to withdraw money once the limit is exceeded. Currently, a bank customer pays Rs 20 per transaction if the same situation occurs. Reserve Bank of India allows all bank customers to make five free ATM transactions at their own banks before these fees are charged. The new rule will take effect on January 1, 2022, according to the central bank. However, all bank customers with debit cards will be able to make five free transactions (cash or no cash transactions) at their banks’ ATMs per month. In addition, they will be eligible for three free transactions from other metropolitan city banks and five free transactions in non-metropolitan cities. The RBI had notified the changes in June this year.

What exactly did the RBI say about ATM transactions?

“Customers are entitled to five free transactions (including financial and non-financial transactions) each month from their own bank’s ATMs. They are also eligible for free transactions (including financial and non-financial transactions) from other ATMs. such as three transactions in metro centers and five transactions in non-metropolitan centers Beyond free transactions, the limit / limit on customer charges is Rs 20 per transaction, as stated in the DPSS circular .CO.PD.No.316 / 02.10.002 / 2014-2015 of 14 August 2014. To compensate banks for the higher exchange rate and given the general escalation of costs, they are allowed to increase customer charges up to Rs 21 per transaction. This increase will be effective from 1 January 2022, ”the Reserve Bank of India said in a notice dated 10 June 2021.

“These instructions will also apply, mutatis mutandis, to transactions made at cash recycling machines (other than cash deposit transactions),” the central bank said, adding that additional taxes will be paid. about that amount.

Banks notify customers of the new rule

Some banks, including HDFC Bank and Axis Bank, have updated their website with the new notification.

“As of January 1, 2022, the ATM transaction charge rate exceeds the free limit of Rs. 20+ taxes would be reviewed at Rs. 21+ taxes, as long as it is applicable,” says the website of HDFC Bank.

“For transactions with HDFC Bank ATMs, only cash withdrawal transactions will be considered. Non-financial transactions (balance check, mini statement and PIN change) will be free. For transactions at non-HDFC Bank ATMs, transactions considered receivable will include both financial transactions (cash withdrawals) and non-financial transactions (balance check, mini statement and PIN change), ”he adds.

According to the Axis Bank website, “As of January 1, 2022, the financial transaction fee above the free limit at ATMs or other banks’ ATMs will be 21 INR + GST.” .

Prior to that, the RBI had last raised the transaction limit in August 2021, after a seven-year gap. He noted that the last change in the structure of exchange commissions for ATM transactions was in August 2012, while the charges payable by customers were last reviewed in August 2014. Thus, it has been a substantial time since these commissions were last modified, the bank said.

Read here all the latest news, breaking news and coronavirus news.



Please enter your comment!
Please enter your name here