Monday, Jul 04, 2022

All You Need To Know About New Charges On ATM Transactions Effective From January 1

Customers will now have to pay Rs 21 per transaction on exceeding their monthly limit for ATM withdrawals from January 1, 2022.

Customers of both private and public banks will now have to pay extra charges on ATM withdrawals if their monthly limit gets exhausted. Customers previously had to pay a charge of Rs 20 on exceeding their monthly limit on ATM withdrawals. But the Reserve Bank Of India (RBI) mentioned in one of their previous notifications that customers will have to pay even more charges from January 2022 for ATM transactions if they cross their withdrawal limit. Thus by the end of next week, customers will have to pay extra charges on ATM withdrawals exceeding their monthly limit.


Now, the extra charge has been increased to Rs21 per transaction. RBI notified about this upcoming change in June, 2021. Both private and public banks have been allowed to increase the fee for cash and non-cash ATM transactions beyond the free monthly permissible limit in order to compensate the banks for the higher interchange fee and the general escalation in costs.

RBI mentioned in their notification, "This increase shall be effective from January 1, 2022. Applicable taxes, if any, shall be additionally payable," read the notification.”

Customers can still avail up to five free transactions, including financial and non-financial transactions, every month from their respective banks. They can also withdraw cash free of any charge from other bank ATMs in metro centres and five free transactions in non-metro centres.

Most of the banks have already mentioned on their official websites about the hike in the extra charge of cash withdrawal through ATM.  "With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable,” mentioned HDFC bank on their website

"For transactions at HDFC Bank ATMs, only Cash withdrawal transactions will be considered for charging. Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change) will be free. For transactions at Non HDFC Bank ATMs, transactions considered for charging will include both Financial (Cash Withdrawal) and Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change)", says the notification on HDFC bank.

“Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST", says Axis Bank website.

The RBI has increased the transaction limit after almost seven year.  In August 2014, the charges payable by customers were last revised.