As previously announced, banking charges will go up in the New Year. Under the new rates, additional charges will be levied after the free installments of debit and credit card transfer limit. ATMs will also be charged after the free transaction limit set by the banks.
The charges are applicable after the monthly transactions of the customers fixed by each bank. The RBI itself has pointed out that the rate hike will be a burden on consumers if they do not withdraw money from ATMs carefully. Banks can increase transaction rates further, Just want to let the customers to know about new rates.
Customers can make up to five free transactions every month from their own bank's ATMs. There will be a fee of Rs 21 plus GST for each cash transaction made above the free limit at a bank or other bank ATM or online transfer. Payment will only be deducted from your account when the monthly limit is reached. This will automatically deduct from your account.
Customers currently pay a maximum of Rs 20 per transaction. Instead, they will be charged Rs 21 each. This is because banks are allowed to charge high interchange fees.
Additional fees will be charged, including cash transactions, non-cash transactions such as mini statement and balance checking. At the same time, three free transactions can be made from other banks' ATMs in metro cities. Up to five transactions can be made at non-metro locations.
In addition, the central bank has allowed banks to increase the interchange fee from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions at all centers. This was from August 1, 2021.
