To Reduce Rush in banks, Banks appoints ATM Terminals at all major locations. People also tend to use them frequently for their daily cash needs!
But from January 2022 onwards, Usage of ATM Terminals becomes more costlier. Reserve Bank of India(RBI)has approved all the banks to hike service charges to 21 Rupees+GST. This charge is applicable to the transactions over and above 5 Free transactions in a month.
Why RBI Lets Banks To Hike Service Charge?
From the past few years banks are facing severe NPA(Non-Performing Assets)Problems and huge operating expenses to run their businesses. To recover their losses, banks urge RBI to let them hike service charges.
Considering their request, RBI classifies bank branches into rural, urban and semi-urban and approves banks to fix service charges depending on the bank location.
As you know that RBI has the right to alter service charges from time to time and approves banks to hike ATM Charges from January 2022 onwards. This decision was taken in June 2021 and instructed all banks to implement from 2022 January.
Though this news boosts banking organisations, customers who rely on ATM withdrawals would suffer a lot. So if you are withdrawing cash at ATM Terminals, do remember you have to pay extra service charge above the 5 Free Transaction limits