Cash Withdrawal from ATMs will be expensive from January 1, 2022, Charged more for every transaction after reaching the limit

Cash Withdrawal from ATMs: Withdrawing cash from ATMs will be expensive from next month i.e. New Year. From January 1, 2022, customers will have to pay more for crossing the free ATM transaction limit. In June itself, the Reserve Bank of India (RBI) allowed banks to increase charges for cash and non-cash ATM transactions in excess of the free monthly limit with effect from January 1, 2022. Axis Bank said, “As per RBI guidelines, the financial transaction charges above the free limit at Axis Bank or other bank ATMs w.e.f. 01-01-22 will be ₹21 + GST. 

Cash Withdrawal from ATMs: New atm transaction charges

From the next month i.e. from January 2022, customers will have to pay ₹21 per transaction instead of ₹20 if they exceed the monthly limit of free transactions. RBI had said, “In view of compensating banks for higher interchange charges and a general increase in cost, they are permitted to increase the customer charges to ₹21 per transaction. This increase will be effective from January 1, 2022.” 

Free atm cash withdrawal limit

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 centers.

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Apart from this, the central bank also allowed banks to increase the interchange fee per transaction from ₹15 to ₹17 for financial transactions and ₹5 to ₹6 for non-financial transactions across all centers. This was effective from 1 August 2021.