The central bank has also allowed banks to increase the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and Rs 5 to Rs 6 for non-financial transactions across all centres. It was effective from 1st August 2021.
Bank customers will have to pay more than before for cash withdrawal from ATMs from January 1st. The increased charges will apply after the free monthly limit is exhausted. Customers are getting messages from their respective banks about the increased charges. The Reserve Bank of India (RBI) had announced in June that banks in the country are now allowed to increase charges for cash and non-cash ATM transactions over the free monthly limit for users. This change in rates will be effective from January 1st, 2022. RBI said in a circular issued earlier banks are allowed to increase the amount up to Rs 21 per transaction. This increase will be effective from 1 January 2022.
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Axis Bank said that as per RBI guidelines, the financial transaction charges above the free limit at Axis Bank or other bank ATMs will be Rs 21 + GST with effect from 01-01-22. From January, customers will have to pay Rs 21 per transaction instead of Rs 20 if, they exceed the monthly limit of free transactions. Customers will be eligible for five free transactions (including financial and non-financial transactions) every month from their bank ATMs. They will also be able to do three free transactions from other banks’ ATMs in metro centres and five at non-metro centres.