It often happens that we go to ATM to withdraw cash and there is no cash in the machine.
There is also an aspect of ATM that sometimes we have to pay extra charge for withdrawing cash from ATM. This happens when we do a transaction after the free withdrawal limit. That is why it is important to know that at which places we can do free transactions from ATMs and how much charge will have to be paid after the limit.
5 FREE TRANSACTIONS FROM YOUR BANK ATM
As per RBI rules, a customer can do five free transactions (financial and non-financial) every month from any ATM of his bank. There is a limit of three free transactions (financial and non-financial) from ATMs of other banks in six metro cities of Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. For small towns, there is a 5 free withdrawal limit from ATMs of other banks.
How much charge after free limit
Banks levy charges for withdrawing money more than the fixed free limit from banks’ ATMs. At present, the per customer per transaction charge outside the limit is Rs 20 plus GST. This means that if you transact from your bank or other bank’s ATM beyond the free transaction limit, then you will have to pay this charge per transaction.
Charges will increase from January 1, 2022
Recently, RBI has allowed banks to increase fees for withdrawing cash or doing other transactions more than the fixed free monthly limit through ATMs from next year. Under this, if bank customers transact more than free withdrawal from January 1, 2022, then they will have to pay Rs 21 plus GST per transaction. The increased fee will be applicable from January 1, 2022.
Interchange fee also increased
According to an RBI circular, with effect from August 1, 2021, the ‘interchange fee’ per financial transaction has been increased from Rs 15 to Rs 17 and in case of non-financial transactions from Rs 5 to Rs 6. In view of the increasing cost of installation of ATMs and increase in ATM maintenance expenses, it has been approved to increase the fee. Banks install ATMs for the convenience of their customers. Along with this, services are also provided to the customers of other banks. For usage beyond the prescribed limit, they charge a fee which is called interchange fee.
Banks will also pay penalty from October 1
According to the new order of RBI, banks / white label ATM operators have been asked to ensure the availability of cash in ATMs and strengthen their systems. If the banks are not able to ensure the presence of cash in the ATM, then they will have to pay the prescribed penalty. This scheme will be effective from October 1, 2021.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
