ATM Service Charges to Increase by Rs. 1 More per transaction from Today

Banks to now charge Rs 1 more for Automated Teller Machines (ATM) service charges from Saturday (January 1), following an order from the Reserve Bank of India (RBI). Customers will now have to pay Rs 1 more beyond the permissible free transactions for cash as well as non-cash purposes.

As per the RBI notification dates June 10, 2021, "Banks have been permitted to charge Rs 21, instead of Rs 20 with applicable taxes, if any, shall be additionally payable from January 1, 2022."

However, the customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank.

They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz three transactions in metro centers and five transactions in non-metro centers.

The RBI in its statement said that the changes has been made citing the increasing cost of ATM deployment and expenses towards maintenance incurred by banks or white-label ATM operators.

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