New Delhi (Jaya Dorbi). The Federal Reserve Bank of India (RBI) has announced some changes within the rules for cash withdrawal from cash machine Machines (ATMs). These ATM cash withdrawal rule changes include higher fees on transactions exceeding the free limit, new free ATM transaction limits and increased interchange fees.
RBI made this announcement by issuing a circular supported the recommendations of a committee constituted in June 2019 under the chairmanship of the Chief Executive, Indian Banks' Association, which outlines the whole gamut of ATM charges and charges for ATM transactions, with special specialize in the interchange structure. Was reviewed.
The RBI circular said, "The recommendations of the committee are extensively examined. It's also observed that the last change within the interchange fee structure for ATM transactions was in August 2012, while the fees payable by the purchasers were last in August 2014." were revised. Tons of your time has passed since these fees were last changed."
These 5 changes in ATM cash withdrawal rule
1: Free cash withdrawal limit from their own bank ATMs: Bank customers are now eligible for five free transactions (including financial and non-financial transactions) monthly from their own bank ATMs.
2: Limit on free ATM transactions from other banks: Bank ATM cardholders are now eligible for free of charge transactions (including financial and non-financial transactions) from ATMs of other banks. Three transactions in metro cities and five transactions in non-metro cities.
3: Increase in charges over and above the free limit on ATM cash withdrawals: RBI has allowed banks to extend the fees on ATM transactions over and above the free ATM transaction limit. "Banks are permitted to extend the customer charges to ₹21 per transaction to offset the upper interchange charges and general increase in cost, with effect from January 1, 2022," the RBI circular announced.
4: Increase in Interchange Fee: RBI has allowed a rise within the interchange fee per transaction from ₹15 to ₹17 for financial transactions and ₹5 to ₹6 for non-financial transactions across all centers. This may be effective from 1 August 2021.
5: New charges on ATM withdrawals in more than free transaction limit: As per the new RBI circular, a bank customer will need to pay ₹21 for each ATM cash withdrawal beyond the free transaction limit. It'll be effective from 1 January 2022. Currently, this fee is ₹20.