As per the Reserve Bank of India (RBI) Guidelines, the customers will have to pay more if they exceed the free ATM transaction limit.
The Customers are eligible for five free transactions every month from their own bank ATMs. This includes both financial and non-financial transactions. Beyond the limit, they have to pay an extra amount of Rs 20 for each ATM transaction. For customers using other bank ATMs for cash withdrawal are allowed three free ATM transactions in metro cities and five in non-metro centres. RBI has now raised this interchange fee from Rs 20 to Rs 21 per transaction, effective January 1, 2022.
“In line with the RBI guidelines, the financial transaction fee above the free limit in Axis Bank or other bank ATMs will be Rs.21 + GST w.e.f. 01-01-22,”said Axis Bank.
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 Rs.15 to Rs.17 for financial transactions and from Rs.5 to Rs.6 for non-financial transactions in all centres. This was effective from 1 August 2021.