Rbi Gives Permission To Increase Atm Withdrawal Charges
The central bank said in a notification that this revised rate would be effective from January 1, 2022.
New Delhi. The Reserve Bank of India (RBI) has recently allowed banks to increase the charges on Automated Teller Machines (ATMs) from Rs 20 to Rs 21 per transaction. These charges will be levied by the bank on the customers once they exhaust their free ATM withdrawal limit. The central bank said in a notification that this revised rate would be effective from January 1, 2022.
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Five free ATM transactions
Customers are eligible for five free transactions every month from their bank’s ATMs. This includes both financial and non-financial transactions. Exceeding the limit, they will have to pay an additional amount of Rs 21 for each ATM transaction. Three free ATM transactions are allowed in metro cities and five in non-metro centers for customers using other bank’s ATMs for cash withdrawal.
Decision taken after seven years
RBI said in the notification that after almost seven years, the charges for ATM transactions are increasing. The last change in the interchange fee structure for ATM transactions was done in August 2012. The charges payable by the customers were last revised in August 2014.
In view of the rising cost of ATM deployment and maintenance charges, the central bank has decided to increase the transaction fee. In June 2019, the RBI had set up the committee to review the full scope of ATM fees and charges, with special focus on the interchange structure for ATM transactions.
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Interchange fee also increased
Keeping in mind the need to balance the requirements of stakeholder entities and customer convenience, RBI has also increased the interchange fee from ₹15 to ₹17 for financial transactions and ₹6 to ₹5 for non-financial transactions. The new rates will be applicable from August 1, 2021. Interchange fee is a fee charged by banks to merchants processing credit card or debit card payments.
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