ATM Cash Withdrawal: If you withdraw cash repeatedly from ATM, now you will have to pay more for it. The Reserve Bank of India (RBI) has increased the fees on transactions after the free limit from ATMs.
New Delhi: ATM Cash Withdrawal: If you withdraw cash repeatedly from ATM, now you will have to pay more for it. The Reserve Bank of India (RBI) has increased the fees on transactions after the free limit from ATMs. In view of the increasing burden on banks, RBI has given permission to increase the charges for ATM transactions, which will have a direct impact on the customers.
Withdrawing money from ATM is expensive
At present, customers are allowed 5 free transactions from their bank’s ATMs in a month, while in metro cities 3 transactions are free from other bank’s ATMs and in non-metro cities 5 transactions are free from other bank’s ATMs. This free transaction limit includes both financial and non-financial transactions. After this limit, if the customer does any transaction from ATM, then he will have to pay Rs 21 per transaction, which was Rs 20 till now. According to the circular issued by RBI, this fee will be applicable on the customers from January 1, 2022.
ATM interchange fee also allowed to increase
Apart from this, RBI has given permission to increase the interchange fee after about 9 years in view of the expenses on installation and maintenance of ATM. RBI has increased the interchange fee for any financial transaction from Rs 15 to Rs 17 per transaction, from Rs 5 to Rs 6 for non-financial transaction.
These new charges will be applicable from August 1, 2021.
What is the interchange fee
When a customer of one card issuing bank makes a transaction from an ATM of another bank, then the card issuing bank pays a fee to the ATM operator which is called interchange fee. At present, this interchange fee is Rs 15 for financial transactions and Rs 5 per transaction for non-financial transactions, which has been increased to Rs 17 and Rs 6. Actually, ATM operators were demanding to increase the interchange fee for a long time, but the banks were not able to agree. Now the fee has increased, so its burden will fall on the customers.
Fee hiked after 9 years
Let us tell you that RBI had constituted a committee in June 2019 to look into this entire matter of ATM charges and fees with special focus on the interchange structure for ATM transactions. According to RBI, the recommendations of the committee have been extensively examined, it is also observed that the interchange fee structure for ATM transactions was last changed in August 2012, while the charges payable by the customers were last revised in August 2014. it was done. Thus a lot of time has elapsed since these charges were last changed.
Two years ago, RBI had given clarification regarding free transactions, in which it was told which transactions are free in ATM and which are not.
It will not be considered as a transaction- (ATM of other bank)
If the ATM is faulty then the transaction will not be considered
if there is no cash then the transaction will not be counted. Entering the
wrong PIN will also not be counted in the transaction.
RBI on free transaction limit (ATM of the bank whose card is the same)
Checking the balance will not be counted in the free transaction limit –
Fund transfer, tax payment, not in the free transaction limit –
Applying for check book through ATM will also not be in the free limit
