New Delhi | Jagran Business Desk: Bank customers with debit and credit cards will have to pay a higher amount of extra charges if they exceed the number of free ATM transactions from January 1, 2022. This decision was announced by the Reserve Bank of India that from next month customers will be charged a higher amount for ATM transactions.

As per RBI notice, the customers will have to pay Rs 21 per transaction instead of Rs 20 after they exceed five free transactions, including financial and non-financial transactions, from their respective banks.

“Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling / cap on customer charges is Rs 20 per transaction, as prescribed vide circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014. 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," said the Reserve Bank of India in a notification dated June 10, 2021.

The central bank further added, "These instructions shall also apply, mutatis mutandis, to transactions done at Cash Recycler Machines (other than for cash deposit transactions)."

The customers will continue to get five free transactions from their respective banks and three free transactions from other bank ATMs in metro centres.

Meanwhile, all the banks have started notifying the customers. HDFC took to their official website and wrote, "With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable. 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)"

Axis bank also dropped an update on their official website, which read, "Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST.”

Posted By: Niharika Sanjeeiv