New year rules 2022: From January 1, ie tomorrow, withdrawing money from ATMs has become expensive.
Let us tell you that the Reserve Bank of India had issued instructions in June, according to which customers of banks will be required to pay the rate of Rs 21 for ATM withdrawals in excess of the free limit from January 1, 2022.
The instructions are applicable from today i.e. January 1, 2022.
This directive of the Reserve Bank has come into effect from yesterday i.e. January 1, 2022. Earlier, banks were allowed to charge Rs 20 for cash withdrawals in excess of the prescribed limit. It is a matter of relief for banking customers that even though the fee rate has been increased from today, they are able to do free ATM transactions five times a month as before . This includes cash withdrawals as well as non-financial transactions.
There will be no charge for three transactions in metro cities
Apart from this, banking customers are also able to do three transactions in a month in metro cities and five transactions in non-metro cities from ATMs of banks other than their own bank. RBI had earlier allowed banks to levy an ‘interchange’ fee of Rs 17 for financial transactions and Rs 6 for non-financial transactions.
This increased rate was to come into effect from August 1, 2021. The decision to increase the transaction charges has been taken due to increase in the cost of the banks related to installation and maintenance of ATM machines.
This is expected to strike a balance between the expectations of the financial entities and the convenience of the customers. In June 2019, the central bank had formed a committee headed by the Chief Executive of Indian Banks’ Association to review ATM operations.