Debit Card ATM withdrawal transaction charge: this is what you will pay from 1 January after exhausting free limits
Withdrawing cash from the bank ATMs has become dearer now. Banks will now be charging Rs 21 from the customers for every transaction made by them beyond the free limit. Source: PTI
Hike implemented from this date:
The hike has been effective from 1 January. Source: PTI
Why this increase?
The hike comes in the wake of a decision by the Reserve Bank of India (RBI). The banking regulator in June 2021 notified an increase in ATM charges. According to this notification, RBI has allowed the banks to charge Rs 21 instead of Rs 20 per transaction, to its customers for ATM transactions beyond the free limit. Source: PTI
RBI Notification
“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,” the RBI said in a circular, revising it from the existing rate of ₹20 per transaction. Source: PTI
Number of Transactions Allowed
All customers must know that they are eligible for five free transactions from their own bank's ATM. Moreover, they are also allowed to make three free transactions in metro cities and five free transactions in non-metro cities from other banks' ATM. Source: PTI
HDFC Bank
India’s largest bank HDFC Bank has also put the information about the increase in ATM fee on its website.
“With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable,” the HDFC Bank Website says. Source: PTI