Business

Why will ATM withdrawal charges increase from January 1 and how much you will you have to pay? Details here

newshungar 3 years ago 2 min read

New Delhi: Come on January and the withdrawal of an ATM beyond a certain extent will pinch the customer’s pocket because the bank will collect a higher ATM withdrawal fee than January 1, 2022.

Reserve Bank of India has banks permitted in June to increase cash costs and non-cash ATM transactions outside the monthly free limits allowed from next year.

“To compensate for banks for higher exchange fees and remember common escalation in costs, they are allowed to increase the cost of customers to Rs 21 per transaction. This increase applies from January 1, 2022,” RBI said in a round.

New ATM withdrawal fees from January 1, 2022

Bank customers must pay Rs 21 per transaction, not RS 20, with the effect of January 1, 2022, if it exceeds the monthly limit of free transactions.

However, customers will continue to be eligible for five free transactions (including financial and non-financial transactions) every month from their own Bank ATM. They will also be able to do three free transactions from other bank ATMs in Metro centers and five in non-metro centers.

ATMs are put forward by banks to serve their own customers and also provide services to other bank customers as acquirers where they get exchange income.

Why does RBI allow costs to be improved?

The RBI said the allegations had been allowed to increase given the increasing cost of the spread of ATM and the cost of the maintenance of ATMs issued by the Bank / ATM Operator Label, also considered the need for the expectations of the balance of stakeholder entities and customer convenience.

It should be noted here that the central bank has established a committee in June 2019 under the leadership of the executive head of the Indian Bank Association to review the graduation of automatic teller machines (ATMs) with a focus on the intersection of the structure for ATM transactions.

RBI has said that the advice of a comprehensive panel was examined.