From January 1, 2022, bank customers will pay a higher fee for ATM cash withdrawals. In the event that a transaction exceeds the free monthly allowed limit, a higher fee will be applied. Every month, all banks offer a fixed number of free cash withdrawals and other transactions at their ATMs, after which consumers must pay a nominal fee. The fees for ATM cash withdrawals that exceed the free limit in a month will be increased by the banks.
The Reserve Bank of India had given banks permission to charge more for cash ATM transactions over the free monthly limit. Customers are entitled to five free transactions per month from their own bank ATMs and three from the other bank ATMs (including both financial and non-financial transactions). Aside from free transactions, consumer prices are capped at Rs 20 per transaction. This raise will take effect on January 1, 2022. Several banks, including HDFC Bank, ICICI Bank, and Axis Bank, have updated their websites to reflect changes in fees for cash and non-cash ATM transactions that exceed the monthly free limit.