The Reserve Bank of India (RBI) has increased the cash withdrawal charges on ATMs if the cardholder exceeded the monthly limit of free transactions on their debit or credit cards.
The RBI in June has announced that the banks in the country are now allowed to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users. This change in the rates will come into effect from 1st January 2022.
The RBI issued a circular stating that banks can increase the ATM cash withdrawal charges to compensate for the higher interchange fee and the general cost escalation. Now, banks can increase the customer charges to Rs.21 from Rs.20 per transaction. This increase shall be effective from 1st January 2022.
Starting from January 2022, customers will have to pay Rs.21 per transaction when they exceed their monthly limit of free transactions. As of now, customers can continue to be eligible for five free transactions, including both financial and non-financial transactions per month from their own bank ATMs. The customers can also do three free transactions from other bank ATMs in metro centres and five in non-metro centres.
The central bank had earlier allowed the banks to increase interchange fees for financial transactions to Rs.17 and non-financial transactions to Rs.6 in all centres. The earlier increase in charges was with effect from 1st August 2021.
For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.
