As this year is coming to an end, the government had introduced many financial changes that will be imposed from the first day of the next year which will impact the common man too. These new changes will be related to the banking, financial and other sectors.
These are some of the changes that are expected to have an effect on the day-to-day life of the people. Banks have decided to impose heavy charges on ATM withdrawals beyond a certain limit from next month. The RBI has hiked the charges on withdrawals of all private and public banks. The customers will have to pay Rs. 21, unlike the Rs. 20 which was the cost earlier after exceeding the monthly limit on transactions with effect from January 1, 2022. Aside from this, there is also a tax under GST ( Goods and Services Tax ) regime.
The new charges will only be imposed if the given monthly transactions. The banks have been allowed to hike these charges to compensate for the high interchange charges and the general increase in costs.
A committee was constituted by the Reserve Bank of India back in June 2019 to review the fees for the ATM charges and other fees also. These charges were increased after a comprehensive review was done by the committee.
But the customers will be able to get 5 free transactions including all the financial transactions and the non-financial transactions every month from their own bank’s ATMs and also from other banks in the case of metro centers and also 5 in non-metro centers.
The Customers of India Post Payments Bank ( IPPB ) will have to pay an extra charge for depositing and withdrawing cash amounts up to Rs. 10,000. This new rule will also come into effect from 1st of January 2022. IPPB bank offers three types of saving accounts to their customers. The first one is called the ‘IPPB Basic Savings Account’. Cash deposition up to any amount will be free. Withdrawal of cash up to four transactions per month will also be free and after that, there will be a 0.5% charge of the value subject to a minimum of Rs. 25 per transaction.
In the IPPB Savings and Currents Accounts, cash deposits up to Rs. 10,000 and after that, a 0.50 % charge of the value subject to a minimum of Rs. 25 per transaction. Withdrawal of cash up to Rs.25,000 per month will be free. After that, a charge of 0.50% of the value is subject to a minimum of Rs. 25 per transaction.
Banks have also started to notify their customers through their official websites.