ATM cash withdrawals will be expensive from next month

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• Dec 3, 2021 | moderator

New Delhi: The Reserve Bank of India (RBI) issued new guidelines for banks to increase charges for cash and non-cash ATM transactions.

In this regard, from next month, customers will have to pay more if they make exceed the free ATM transaction limit. 

"In line with the RBI guidelines, the financial transaction fee above the free limit in Axis Bank or other bank ATMs will be ₹21 + GST w.e.f. 01-01-22" stated Axis Bank.

Starting next month, customers will have to pay ₹21 per transaction instead of ₹20 if they 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 ₹21 per transaction. This increase will come in force from January 1, 2022," said the RBI.

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Customers will still be eligible to make five free transactions every month from their own bank ATMs.

They would additionally be able to do three free transactions from other bank ATMs in metro centers and five in non-metro centers.

Moreover, the central bank had further enabled the banks to raise interchange fees per transaction from ₹15 to ₹17 for financial transactions and ₹5 to ₹6 for non-financial transactions in all cities. This extension came into force on August 1 2021.