The Buyt Desk
The Reserve bank of India announced new Automated Teller Machine( ATM ) cash withdrawal charges. These charges will increase the transaction cost for all the users. The charge for ATM withdrawal beyond the free permissible limit has been increased. This charge was last revised in 2014. Similarly, the interchange fee per ATM transaction was last revised in 2012 and now it has been raised from Rs 15 to Rs 17.
Here are the new charges on ATM withdrawal-
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ATM Withdrawal charge raised
The charge on ATM withdrawals beyond the permissible free limit will be Rs 21 instead of Rs 20. These charges will be applicable from 1st January 2022. The RBI circular said “To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022.”
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Interchange Fee Raised
The interchange fee is paid by the card issuer bank to the ATM operator bank. If you have an ATM card of bank ‘A’ and you can’t find the ATM of the bank ‘A’. But there is an ATM of bank ‘B’ nearby then you can withdraw money from bank B’s ATM. But bank ‘A’ pays an interchange fee to bank ‘B’. It has been raised from Rs 15 to Rs 17 for financial transaction. This will be implemented from 1st August 2021.
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Free ATM transaction limit
Customers will be eligible to get 5 free transactions per month from their bank ATMs. They will be eligible for 3 free transactions from other bank’s ATM if you reside in a metro city and 5 free withdrawal in a month if you reside in a non-metro city.
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Fee Raised for Non Financial transactions too
The non-financial transaction in ATM’s like a request for a cheque book or changing the PIN of your ATM will also see a fee hike. The non-financial transaction will be and Rs 6 from Rs 5.
These charges have been raised by RBI so that banks can cover the cost of deployment and maintenance of ATMs.
