ATM Fee Hiked, Now Pay Rs 21 Per Transaction

New Delhi: Following an order from the Reserve Bank of India (RBI), banks have increased the charge on Automated Teller Machine (ATM) cash transactions and other transactions from Saturday, January 1, 2022, on the first day of the new year.

This fee hike has been done for doing more transactions than the stipulated number of transactions. This also includes cash and other transactions.

According to the RBI notification dated June 10, 2021, from January 1, 2022, banks will now be able to charge Rs 21 as ATM transaction charge instead of Rs 20. However, customers can do up to five free transactions (including financial and non-financial transactions) every month from their bank ATMs. This fee will be levied only for transactions exceeding this.

Customers can also do free transactions (including financial and non-financial transactions) from ATMs of other banks, but the limit has also been fixed. In metro cities, customers can do three transactions from other bank's ATMs while in non-metro cities, five transactions can be done.

Earlier, the last change in the interchange fee structure for ATM transactions was done in August 2012, while the charges payable by the customers were last revised in August 2014.

RBI has notified these changes with effect from January 1, 2022, citing rising cost of ATM installation and ATM maintenance expenses incurred by banks or white-label ATM operators.

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