As per RBI notification with effect from June 10, 2021, bank customers will have to pay Rs 21 per transaction instead of Rs 20 with effect from January 1, 2022, if they exceed the monthly limit of free transactions. However, 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 bank’s ATMs in metro centers and five at non-metro centres.
What RBI has said
“Customers are eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (including financial and non-financial transactions) from other bank’s ATMs. Three transactions in metro centers and five transactions in non-metro centres. As per circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014, in addition to free transactions, the customer charges ceiling is Rs.20 per transaction. In view of the higher interchange fee and general increase in cost, they are allowed to increase the customer charges up to Rs 21 per transaction. This increase will be effective from January 1, 2022. Applicable taxes, if any, shall be payable additionally,” the notification said.
Banks have already notified the hike
According to the HDFC Bank website, the ATM transaction charge rate is Rs. 20 + taxes will be converted to Rs. 21 + Taxes till January 1, 2022. Only cash withdrawal transactions will be assessed for charges at HDFC Bank ATMs.
According to Axis Bank’s website, “With effect from January 1, 2022, the free limit plus financial transaction charges at Axis Bank or other bank ATMs will be INR 21 + GST.”
interchange fee hike
With effect from 1st August, 2021, Central bank Banks were allowed to increase the interchange fee per transaction from Rs 15 to Rs 17 across all centers for financial transactions and from Rs 5 to Rs 6 for non-financial transactions.