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From next month, customers will have to pay more if they exceed the free ATM transaction limit. In June, the Reserve Bank of India (RBI) had permitted banks to increase charges for cash and non-cash ATM transactions beyond the free monthly permissible limit from 1 January 2022. 

“In line with the RBI guidelines, the financial transaction fee above the free limit in Axis Bank or other bank ATMs will be 21 + GST w.e.f. 01-01-22,"said Axis Bank.

New ATM transaction charges

Starting next month, customers will have to pay 21 per transaction, instead of 20 if they exceed the monthly limit of free transactions. "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," the RBI had said in a circular.

Free ATM cash withdrawals

Customers will continue to be eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They would also be able to do three free transactions from other bank ATMs in metro centres and five in non-metro centres.

Apart from this, the central bank had also allowed the banks to increase interchange fees per transaction from 15 to 17 for financial transactions and from 5 to 6 for non-financial transactions in all centres. This was with effect from 1 August 2021.

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