New Delhi: Some banks are going to hike ATM cash withdrawal charges from January 1, 2022. However, it will be applicable after customers exhaust their free transactions.
As per the RBI notification that was issued earlier, banks can charge Rs. 21 per transaction from the customers after they exhaust their free transactions.
It has also made it clear that in Metro cities, customers can avail five free transactions at their own bank’s ATM and three from other bank’s ATMs. In non-metro cities, five free transactions are allowed from other banks’ ATMs.
In the notification, RBI mentioned, “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”.
Following the notification, HDFC bank and Axis bank have announced the new charges that will come into effect from January 1, 2022.
ATM cash withdrawal charges for SBI customers
Currently, the largest public sector bank, SBI, charges Rs. 20 + GST per transaction. It is applicable to customers who exhaust their monthly limit of free ATM transactions.
The ATM transaction charge is Rs. 10+GST if it is done on an SBI ATM.