No easy cash! Even Rs 100 withdrawal from bank ATM after free limit to cost Rs 21 next year

From January 1, 2022, bank customers will have to pay more for making more than allowed “free” transactions at ATMs. The RBI this week permitted commercial banks to increase charges for cash and non-cash ATM transactions beyond the free monthly permissible limit from next year.

If the bank’s customer, exceed the monthly limit of free transactions, then he/she will have to pay Rs 21 per transaction, instead of Rs 20, with effect from January 1, 2022, as per the RBI decision.

Customers will be allowed to make five free transactions every month from the ATM of their own banks. Both financial and non-financial transactions will be counted for this purpose. This means, even if you do a non-financial transaction like checking balance at your bank’s ATM after exhausting the quota of five free transactions, you will have to pay Rs 21! Even if you withdraw Rs 100 from your bank’s ATM for the sixth time (after five free transactions) you will have to pay Rs 21 from next year.

At other bank’s ATMs, customers will be allowed only three free transactions in metro centres and five transactions in non-metro centres. The new charge of Rs 21 will apply after the exhaustion of three free transactions in metro centres and five free transactions at non-metro centres.

“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,” the RBI said.

“Beyond the free transactions, the ceiling/cap on customer charges is ₹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 ₹21 per transaction. This increase shall be effective from January 1, 2022,” it added.    ReadMore

 

Source : financialexpress