ATM Cash Withdrawal: The Reserve Bank of India (RBI) is preparing to increase the fee and ATM interchange fee for exceeding the limit of five free transactions. This information was given in a report of a news portal.
ATM Cash Withdrawal: Withdrawing cash from ATM will now become expensive as the Reserve Bank of India (RBI) is preparing to increase the fee and ATM interchange fee for exceeding the limit of five free transactions. This information was given in a report of Hindu Businessline on Tuesday. That is, now customers will have to spend more from their pocket to withdraw cash from ATM.
How much will the charge increase?
How much is the proposed fee increase? On this, the news portal quoted people aware of the matter in its report and said, the National Payments Corporation of India (NPCI) has recommended increasing the maximum cash transaction fee from the current level of Rs 21 to Rs 22 after the completion of the free limit five times.
Payment regulator NPCI has also recommended increasing the ATM interchange fee for cash transactions from Rs 17 to Rs 19 after discussing it with the industry.
Let us tell you that the interchange fee is levied on withdrawals from another bank’s ATM after a limit. That is, it is the amount paid by one bank to another bank in exchange for using the ATM service. It is also mentioned on the bill after the transaction from the ATM.
RBI held a meeting on this
According to the report, banks and white-label ATM operators agree with NPCI’s plan to increase fees in metro and non-metro areas. However, the Reserve Bank of India and NPCI have not yet commented on this development.
The news portal report quoted a person familiar with the matter as saying, “RBI formed a second committee headed by the CEO of IBA, which included officials from SBI and HDFC Bank.”
He further said, “After assessing the cost for private and public sector banks, we recommended for this in September last year. We said that the recommendation of NPCI can be kept (for metro sectors), but the real issue is in rural and semi-urban areas.”
Increasing cost of running ATMs
According to the report, the cost of ATM operation in non-metro places has increased due to rising inflation and rising borrowing costs at the rate of 1.5-2 percent in the last two years, higher expenses on transportation, cash replenishment and compliance costs.
Most Read Articles:
- CGHS Cardholder: Big news for central government employees and pensioners! CGHS cardholders will get these medical devices faster, apply like this
- EPFO: You will be able to withdraw PF money from ATM this month of 2025, a new app will be launched
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
