For customers who deal with cash and have many ATM transactions, here is some news for you. As per the latest RBI notification, the bank customers have to pay an extra amount when they withdraw money from ATMs from New Year. This extra amount will be charged if the customers exhaust the prescribed limit for withdrawing money.
The RBI has already sent a notification to the customers for the same. The RBI in their notification mentioned that debit card users can have 5 free transactions (cash or digital) every month at their own bank’s ATM and 3 free transactions for other ATMs in metro cities and 5 free transactions in non-metro cities.
The change will come from January 1, 2022. The credit card and debit cardholders will have to pay an additional Rs. 21 when their transaction withdrawal limit is exceeded. Currently, they used to pay only Rs 20 for the same.
Many private banks like Axis and HDFC Bank updated this new information on their website provided by the RBI. HDFC and Axis Bank mentioned that the charges applicable will be Rs 21+ taxes.
“With effect from 1st January 2022, ATM transaction charge rate beyond the free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable,” the HDFC Bank website stated.
“Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST,” the Axis Bank website stated.
The RBI has increased its rates for transaction limit after 7 years. The last time there was a hike was in August 2014.
With the advent of UPI and digital transactions, many people living in urban cities are going cashless. UPI has been very convenient and a great replica of ATM transactions that don’t have any limit and any extra charges.
For more breaking news, click here.