Cash withdrawals from ATMs will become more expensive from next month, i.e. year 2022. Yes… Withdrawal of cash (ATM transactions) will now be more expensive. A bank can charge a customer after withdrawing money from an ATM over the prescribed limit.
Axis Bank and other banks ATMs will charge Rs 21 plus GST for financial transactions above the free limit, according to RBI guidelines. Starting January 1, 2022, new rates will apply.
As of next month, customers will be charged 21 rs instead of 20 rs for free transactions exceeding the monthly limit. Due to higher interchange charges and higher general costs, the RBI increased the transaction charge to Rs 21.
Withdrawing cash from ATMs is free
Each month, customers will be able to perform up to five free transactions at their own bank ATMs (both financial and non-financial transactions). Further, ATM withdrawals will be free in metro areas for three withdrawals and five for non-metro withdrawals from other banks. Additionally, the RBI permitted banks to raise interchange fees for financial transactions from Rs 15 to Rs 17 and non-financial transactions from Rs 5 to Rs 6 across all centers.
New rules for interchange fees come into effect on August 1
Bank customers will continue to have the option to use their own bank ATMs for up to five transactions free of charge per month (including financial and non-financial transactions). In addition, the customers will be able to use ATMs in metro cities for three free transactions and five in non-metro centers.