Thu. Mar 28th, 2024

The Reserve Bank of India has announced that there will be cash withdrawal charges imposed on ATMs’ transactions if the customers exceed the monthly limit of free transactions on their debit or credit cards.

The Reserve Bank of India in June had said that the banks are allowed to charge for cash and non-cash ATM transactions after the users have availed free monthly permissible transactions. The above said changes will come into effect on January 1, 2022.

The RBI, in a circular, 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.

In the new year, customers will be charged Rs 21 per transaction fee, instead of Rs 20 if they surpass the free transactions limit. “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 per month from their own bank ATMs (including both financial and non-financial transactions). They’d also be allowed to make three free transactions from other bank ATMs in metro areas and five free transactions in non-metro areas.

In addition, the central bank allowed 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 locations. With effect from August 1 2021, this rule has been in force. 

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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