New Delhi: Withdrawal of cash from ATM will be costly from next month i.e. the year 2022. Yes now withdrawing cash (ATM transactions) is going to be more expensive. Banks can levy charges after withdrawing money from the customer’s ATM more than the prescribed limit. As per RBI guidelines, financial transactions above the free limit at Axis Bank or other bank ATMs will attract Rs 21 plus GST. These revised rates will be effective from January 1, 2022.
From next month, customers will have to pay Rs 21 per transaction instead of Rs 20 if they exceed the monthly limit of free transactions. RBI had said that due to higher interchange charges and increase in general cost, it has allowed increasing the charge on the transaction to Rs 21.
Free ATM Cash Withdrawal
Customers will be able to do 5 free transactions (financial and non-financial transactions) every month from their own bank ATMs. They will also be able to do three free transactions from other banks’ ATMs in metro cities and five in non-metro centres. Apart from this, RBI has allowed banks to increase the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions across all centres.
New rules for interchange fees implemented from August 1
Customers will continue to be eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They will also be able to do three free transactions from other banks’ ATMs in metro cities and five at non-metro centres.