Come January 1, bank customers will be charged more on cash withdrawal as opposed to the charges levied now. The new charges will be applicable after the monthly limit is exhausted. Customers are receiving messages regarding the withdrawal rules.
Herer’s what to know about the altered rules
The State Bank of India (SBI) has released the notification which states that customers will have to pay ₹1 more than what they were paying earlier to withdraw money. Customers had to pay Rs 20 earlier, now they will have to pay ₹21 per transaction.
A circular from the SBI read, “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”
All bank customers with a debit card will be eligible for five free transactions on a monthly basis, at an ATM of their own bank. Customers will be allowed three free transactions from other banks in metro cities, those residing in non-metro cities will be allowed five such transactions.
The Reserve Bank of India has allowed banks to increase transaction (cash or noncash) charges when the customers exceed the free transaction limit.
A few banks have also sent messages to their customers. A notice on HDFC bank website read, ” 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”
A similar notice from Axis Bank read, “Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST”