New ATM cash withdrawal rules from tomorrow: 5 things to know

New ATM cash withdrawal rules from tomorrow: 5 things to know.

 

 

 

 

 

Starting 1 January 2022, bank customers will have to pay more for their ATM transactions once the free monthly limit gets exhausted. The Reserve Bank of India (RBI) had announced that the cash withdrawal charges on ATMs will be hiked from 1 January 2022. Lenders like ICICI Bank, HDFC Bank and Axis Bank have updated their website regarding the increased charges for cash and non-cash ATM transactions beyond the free monthly permissible limit for the users.

 

ATM cash withdrawal rules change from 1 January 2022

 

 

 

The central bank allowed the banks to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit from January 2022.

 

New ATM cash withdrawal charges effective 1 January 2022

 

Starting 1 January 2022, customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed the monthly limit of free transactions.

 

Monthly limit of free ATM transactions at own bank

 

Apart from this, the bank customers are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs that is three transactions in metro centres and five transactions in non-metro centres.

 

Why is the change happening?

 

The changes were announced on the basis of the suggestions of a committee set up by the RBI in June 2019. The committee was set up under the chairmanship of the chief executive of the Indian Banks’ Association to review the entire gamut of ATM charges and fees with a particular focus on interchange structure for ATM 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 shall be effective from January 1, 2022,” the RBI had said in a circular.

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