More margin shall be induced on the withdrawal of the cash from January, mentioned by the RBI in the latest rules for users who performed more monthly transactions for free.
Rs 21 will be needed to be furnished by the person as a tax to withdraw the cash from ATM w.e.f 1st Jan 2022. At the present time, the charges are Rs 20. People are subjected to do 3 free transactions from other banks in the metro cities and 5 free transactions in non-metro cities.
“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 Rs 21 per transaction. This increase shall be effective from January 1, 2022,” Mentioned RBI in the circular amending it from the previous rate i.e 20 per transaction. From 1 August 2021 RBI has sanctioned the banks to surge the interchange fees per transaction from Rs 15 to Rs 17 towards the fiscal transactions and from Rs 5 to Rs 6 rendered towards non-financial transactions over centres.
There are some banks who previously circulated their clients towards the surge in the fee for more monthly free transactions from ATMs. According to the website of the HDFC bank, the ATM transaction fee exceeding the free limit of Rs, 20 + taxes will be changed to Rs 21 + taxes as of January 1, 2022.
“It moreover mentioned that 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)”.
“On the website of Axis bank, it is mentioned that Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST”.
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A society is being made by the Regulatory Bank in June 2019 beneath the Chairmanship of the Chief Executive, Indian Banks’ committee to examine the extent of ATM charges and fees with appropriate focus on interchange framework towards ATM transactions. The last amendment in the fee structure for ATM transactions was in August 2012 and the last charges obtained through the clients were amended lastly in August 2014.
“Accordingly, given the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks/white label ATM operators, as also considering the need to balance expectations of stakeholder entities and customer convenience, said RBI.”
RBI mentioned that if there are any taxes subjected to be applicable then the same shall also be payable. These instructions will further apply, mutatis mutandis, to transactions performed towards Cash Recycler Machines (excluding cash deposit transactions).
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