New ATM Cash Withdrawal Rules To Change From Tomorrow: 5 Things Customers Must Know

As per the fresh guidelines issued by the RBI, the customers will have to pay more for their ATM transactions after the free monthly limit gets exhausted.

In this regard, the Reserve Bank of India (RBI) had earlier announced that the cash withdrawal charges on ATMs will be increased from 1 January 2022. After receiving the guidelines from the RBI, other banks such as ICICI Bank, HDFC Bank and Axis Bank have updated their respective websites regarding the new charges for cash and non-cash ATM transactions. However, the banks customers must know 5 things about the new ATM transaction rules.

ATM cash withdrawal charges to increase: In its guidelines, the RBI has allowed the commercial banks to increase the charges for cash and non-cash ATM transactions beyond the free monthly permissible limit from January 2022.

How much to pay for extra ATM cash withdrawal? The RBI has already said that starting from 1 January 2022, the bank customers will have to pay Rs 21 per transaction, instead of Rs 20 if they exceed the monthly limit of free transactions at the ATMs.

Monthly free limits at home bank: The bank customers, however, should know that they are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from home bank ATMs.

Monthly free limits at other banks: As per the RBI guidelines, the bank customers can do three free transactions in metro centres and five transactions in non-metro centres from other banks. These free transactions include financial and non-financial transactions.

Why RBI increased ATM withdrawal charges? It must be noted that the RBI announced the changes based on the suggestions of a committee set up by the central bank in June 2019. The panel made the suggestions after reviewing the entire gamut of ATM charges and fees with a particular focus on interchange structure for ATM transactions.