Here is what you need to pay for ATM cash withdrawals from January
Cash withdrawal from ATM will get costlier from January after the cash withdrawal limit from the ATM gets exhausted. So, credit or debit card customers have to pay more if the limit gets exceeded. In a notification, the Reserve Bank of India has said that customers will have to pay even more charges from January 2022 for ATM transactions once the limit exceeds. Notifications are being done by the banks to remind customers of this rule.
Beyond free monthly limits, the ATM transactions are set to get costlier as RBI had allowed banks to increase charges on cash and non-cash automated teller machines (ATMs).
Customers will have to pay Rs 21 per transaction at their own banks’ ATMs to withdraw money once the limit exceeds after the change is implemented. Presently, the charges are Rs 20.
The new rule will come into effect from January 1, 2022. The Reserve Bank of India allows all bank customers to do five free ATM transactions at their own banks before these rates are charged.
Customers will be eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities. The RBI had notified about the changes in June this year.
HDFC Bank and Axis Bank have updated their website with the new notification.
According to the HDFC Bank website “With effect from 1st January 2022, ATM transaction charge rate beyond the free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable”.
It adds “For transactions at HDFC Bank ATMs, only Cash withdrawal transactions will be considered for charging. Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change) will be free. For transactions at Non-HDFC Bank ATMs, transactions considered for charging will include both Financial (Cash Withdrawal) and Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change)”.
“Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST”, says Axis Bank website.
The RBI after a gap of seven years (August 2012) had increased the transaction limit in August 2021. In August 2014, the charges payable by customers were last revised.