New Delhi: Debit and credit card holders will have to shell out more starting next year.
Cash withdrawal from automated teller machines (ATMs) will get costlier from January 1, 2022, after cash withdrawal limit from the ATM gets exhausted.
The Reserve Bank of India (RBI) in a notification has said that customers will have to pay even more charges from January 2022 for ATM transactions once the limit exceeds.
A few private lenders, including HDFC Bank and Axis Bank, have updated their website with the new notification.
Beyond free monthly limits, the ATM transactions are set to get costlier, as the RBI had allowed banks to increase rates on cash and non-cash ATM transactions.
Now, the 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. Currently, the users pay Rs 20.
The new rule will come into effect from January 1, 2022. The RBI allows all bank customers to do five free ATM transactions at their own banks.
Customers are eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities. The RBI in June had notified the changes.
According to the website of HDFC Bank, “With effect from January 1, 2022, ATM transaction charge rate beyond free limit of Rs 20 + taxes would be revised to Rs 21 + taxes, wherever applicable.”
“For transactions at HDFC Bank ATMs, only cash withdrawal transactions will be considered for charging. Non-financial transactions such as balance enquiry, mini statement and PIN change, however, 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, and PIN change)”.
Axis Bank states, “Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be Rs 21 + GST.”
After a seven-year hiatus (August 2012), the RBI had increased the transaction limit. In August 2014, the charges payable by customers were last revised.
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