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Cash withdrawal charges on ATMs in India are set to be will be hiked from January 1, 2022. Customers will now have to pay more for daily cash withdrawals.
According to a new directive by the Reserve Bank of India (RBI) users will have now to pay Rs21 plus taxes for transactions beyond their free monthly permissible limit.
Additionally, customers are also allowed three free transactions from other banks in metro cities and five in non-metro cities. The current charges are Rs 20 plus taxes..
The RBI, in a circular, said, “To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022."
India’s central bank has made changes to transaction limits after nearly seven years. The last known revision was made in 2014.
The RBI had earlier allowed the banks to increase interchange fees per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions from August 2021.
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