Monday, Sep 26, 2022

From January 1, These Four Bank-Related Changes May Impact You

If you make more than five free ATM withdrawals, you will have to pay a higher charge from January 1. Also, your bank account may be frozen if you don’t complete your KYC

As the year 2021 comes to an end, there are hopes of a better 2022. A lot of financial changes took place in 2021, but some are set to be implemented from January 1, 2022. Here are some banking-related changes that will impact our lives in the new year.

ATM Withdrawals

From this new year, charges for ATM withdrawals, beyond the prescribed free limit, will become more expensive. The Reserve Bank of India (RBI) has decided to let banks increase the amount of money chargeable to a customer if they cross the prescribed free limit of withdrawing cash from an ATM machine. This charge will go up from Rs20 to Rs21 from January 1.

Customers will, however, continue to be entitled to the five free transactions per month from their home bank ATMs and three in metros and five in non-metros from other banks’ ATMs. 

Bank Lockers

In a major positive development for bank locker owners, RBI issued a directive in August 2021 that in case of loss of contents of a locker, banks cannot eliminate their liability altogether if it was due to their employee’s malfeasance. This will be effective from January 1.

RBI also said that a penalty, which is 100 times the annual rent charged by the said bank for availing locker facility, will be levied in such cases.

The notification also mentioned that it is the duty of the bank to provide locker services and inform customers about availing insurance services. However, both the services (locker and insurance) cannot be provided by the same bank.

Bank KYC

RBI had delayed this action of freezing bank accounts of those holders who have still not completed their KYC till December 31. If you have still not yet completed your KYC, then do it quickly otherwise you may lose access to your financial instruments and money kept in any bank or other similar institutions after January 1, reported the Times of India.

India Post Payments Bank Withdrawal Charges

This is a development which got mixed reactions from several people. The India Post Payments Bank, with which HDFC Bank has recently tied up to provide rural banking services, announced last month that for a basic savings account holder who is withdrawing cash at a branch, a charge of 0.5 per cent (minimum Rs25 per transaction) will be levied once they cross the free limit of four transactions per month. Additionally, these charges will be subject to GST at the prevailing rate. Cash deposits are, however, free for all account holders.