Pay 5% Extra Charges To Use ATM From This Date: After Free Limit, ATM Withdrawal Charges Increased To Rs 21

The Reserve Bank of India has declared that if consumers exceed their monthly limit of free transactions on their debit or credit cards, cash withdrawal costs at ATMs will be somewhat higher.

ATM Cash Withdrawal Charges To Increase!

There was an announcement from RBI in June. 

The announcement has related the charges for cash and non-cash ATM transactions.

Banks can charge more for cash and non-cash ATM transactions beyond the free monthly limit. The new rates will take effect on 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.

According To The Circular

From next month you have to pay Rs 21 per transaction, instead of Rs 20.

Yes!

But this can only happen if you 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.