From January 1, 2022, withdrawing money from ATM has become expensive. You will have to pay a higher price for every withdrawal transaction after the free withdrawal limit. According to the instructions issued by the Reserve Bank of India (RBI) in June 2021, customers of banks will have to pay Rs 21 for ATM withdrawals more than the free limit from January 1, 2022.
According to the Reserve Bank of India’s (RBI) notification dated June 10, 2021, from January 1, 2022, instead of Rs 20, the bank will now charge Rs 21 as ATM transaction charge from customers. This will have a direct impact on the pockets of the common man. According to the current rules of the bank, at present the limit of free cash withdrawal from ATM is 5. Cash can be withdrawn from ATM 5 times for free, but for more withdrawals, now Rs 21 will have to be paid.
Earlier Banks Used to Charge Rs 20 Per Transaction
The first 3 transactions are absolutely free on withdrawing money from the bank’s ATMs in six metro cities Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad. It includes both financial and non-financial transactions. Whereas in non-metro cities, you can withdraw money from ATM up to 5 times. After this, for financial transactions in metro cities, Rs 20 per transaction and Rs 8.50 was to be paid as non-financial transaction. Which has now been increased to 21.
Reason For Increasing Transaction Fee
The decision has been taken to increase the transaction fee due to the increase in the cost of banks related to installation and maintenance of ATM machines. At the end of the financial year 2020-21, there were 1,15,605 ‘onsite’ (in bank premises) ATMs and 97,970 ‘offsite’ (other than bank premises) ATMs across the country. In the coming time, an increase in their number can also be seen.