Money

No easy money! Even Rs 100 withdrawal from bank ATM after free limit to cost Rs 21 next year

Representative picture/Pixabay

From January 1, 2022, bank clients can have to pay extra for making greater than allowed “free” transactions at ATMs. The RBI this week permitted industrial banks to enhance expenses for money and non-cash ATM transactions past the free month-to-month permissible limit from next year.

If the bank’s buyer, exceed the month-to-month limit of free transactions, then he/she can have to pay Rs 21 per transaction, as an alternative of Rs 20, with impact from January 1, 2022, as per the RBI choice.

Customers shall be allowed to make 5 free transactions each month from the ATM of their very own banks. Both monetary and non-financial transactions shall be counted for this goal. This means, even if you happen to do a non-financial transaction like checking steadiness at your bank’s ATM after exhausting the quota of 5 free transactions, you should have to pay Rs 21! Even if you happen to withdraw Rs 100 from your bank’s ATM for the sixth time (after 5 free transactions) you should have to pay Rs 21 from next year.

At different bank’s ATMs, clients shall be allowed solely three free transactions in metro centres and 5 transactions in non-metro centres. The new cost of Rs 21 will apply after the exhaustion of three free transactions in metro centres and 5 free transactions at non-metro centres.

“Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres,” the RBI stated.

“Beyond the free transactions, the ceiling/cap on customer charges is ₹20 per transaction, as prescribed vide circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014. 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,” it added.

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