From next month, customers will have to pay more if they exceed the ATM free transaction limit. In June, the Reserve Bank of India (RBI) allowed banks to increase fees for cash and non-cash ATM transactions beyond the free monthly allowance limit from 1 January 2022.
“According to the RBI guidelines, the over-the-counter financial transaction fee in Axis Bank ATMs or other banks will be ⁇21 + GST wef 01-01-22 ”, said Axis Bank.
New ATM transaction fees
Starting next month, customers will have to pay ⁇21 per transaction, instead of ⁇20 if they exceed the monthly limit of free transactions. “In order to compensate banks for the higher interbank fee and in view of the general escalation of costs, they are allowed to increase customer rates to ⁇21 per transaction. This increase will take effect on January 1, 2022, “the RBI said in a circular.
Free cash withdrawals at ATMs
Customers will continue to be eligible for five free transactions (including financial and non-financial transactions) each month from the bank’s own ATMs. They could also make three free transactions from other ATMs in subway centers and five in non-subway centers.
In addition, the central bank allowed banks to increase their interbank transaction fees from ⁇15 la ⁇17 for financial transactions and from ⁇5 la ⁇6 for non-financial transactions in all centers. It took place on August 1, 2021.
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