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Bank Customers Alert: If you are a bank customer and have regular ATM transactions, here’s an important update for you. As per the earlier RBI notification, the bank customers will have to pay extra charge for withdrawal of cash at ATMs from New Year. This extra charge will be applicable if the customers exhaust the prescribed limit for withdrawing money. Notably, the RBI has already sent a notification in this regard to customers.
The RBI had earlier clearly mentioned that the customers with debit cards will be given five free transactions (cash or non-cash transactions) per month at their own bank’s ATM, and they will also have three free transactions from other banks in metro cities and five free transactions in non-metro cities.
The bank customers must note that the change will come into effect from January 1, 2022 and as per the fresh guidelines, the credit and debit cardholders will have to pay an additional Rs 21 per transaction once the withdrawal limit exceeds. At present, the customers are paying only Rs 20 per transaction if they exceed the prescribed withdrawal limit.
“Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling / cap on customer charges is Rs 20 per transaction, as prescribed vide circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014. 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 Rs 21 per transaction. This increase shall be effective from January 1, 2022,” the RBI had said in a notification on June 10, 2021.
Several banks such as HDFC Bank and Axis Bank have updated their website with the new notification from the RBI.
“With effect from 1st January 2022, ATM transaction charge rate beyond the free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable,” the HDFC Bank website stated.
“Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST,” the Axis Bank website stated.
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