As confirmed by the newest reports, bank customers will now have to pay more than earlier if they want to withdraw money from their ATMs.
Not only has the Reserve Bank of India confirmed this, HDFC Bank and Axis Bank have also sent out notices to their customers about this change.
Banks To Charge Re. 1 More For ATM Cash Withdrawal
The hiked charges will be effective from 1 January 2022, and they will be applicable once the free monthly charges are exhausted.
As per HDFC Bank’s notice, “With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable.”
Whereas, Axis Bank states, “Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST.”
As per the notice by RBI, customers will have to pay Re. 1 more than what they had to pay earlier to withdraw money from their account.
This means that the after January 1, 2022, customers will be charged Rs. 21 per transaction, instead of Rs. 20 if they exceed the monthly limit of free transactions.
RBI’s circular states, “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 ?21 per transaction. This increase shall be effective from January 1, 2022.”
Debit Card Holders To Get Five Free Transactions?
However, all bank customers who have a debit card will now get five free transactions, cash or non-cash, at their own banks’ ATM every month.
Also, they will be given three free transactions from other banks in metro cities and five free transactions in non-metro cities.
Additionally, the RBI has also granted permission to the banks to boost charges on cash and non-cash ATMs after the free monthly transactions.
RBI has made the first hike after 7 years, when the last change in interchange fee structure for ATM transactions was in August 2012.
Charges customers had to pay were last revised in August 2014.
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