The Central Bank said in a notification that the Reserve Bank of India (RBI) allowed banks to increase ATM cash withdrawal charges to Rs 21 per transaction. The banks can levy charges on customers within this limit, in case they exhaust their free ATM withdrawals. The revised rate will come into effect from January 1, 2022.
Being a customer, you may know that the customers are eligible for five free transactions every month from their own bank ATMs. Also, you may note that it includes financial as well as non-financial transactions. In case, if you exhaust this limit, the bank may charge up to Rs 21 for each ATM transaction.
The Reserve Bank of India notification says, “It also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers last revised in August 2014. A substantial time has thus elapsed since these fees were last changed.”
Moreover, the RBI said in a notification that considering the need to balance expectations of customer convenience and stakeholder entities, RBI has also increased the interchange fee to ₹17 from ₹15 for financial transactions and ₹6 to Rs 5 for non-financial transactions. The change in interchange fee is applicable from August 1, 2021.
The regulator said that the RBI directive has also issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). State Bank of India has agreed to make changes in the charges and rules for ATM cash withdrawals and bank branches.