Charges for ATM cash withdrawal, debit card, credit card to increase soon
The Reserve Bank of India (RBI) recently allowed banks to increase ATM cash withdrawal charges to Rs 21 per transaction. The banks can levy charges on customers within this limit after they complete their free ATM withdrawals.
The revision will be effective from January 1, 2022, the Reserve Bank of India stated. It may be noted that the customers are eligible for 5 free transactions per month from their own bank ATMs including both financial and non-financial transactions.
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After the limit is exhausted, the users will have to pay an extra amount of Rs 20 for each ATM transaction. For those using other bank ATMs for cash, three free ATM transactions are allowed in metro cities and 5 in non-metro centres.
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ATM cash withdrawal charges have been hiked after almost seven years. The last change was in August 2012, while the charges payable by customers were revised in August 2014.
The revision has been done in view of the increasing cost of ATM deployment and maintenance charges incurred by banks or white label ATM operators.
Earlier in June 2019, a committee was constituted by the RBI to review the entire gamut of ATM charges and fees.
Even RBI raised the interchange fee to Rs 17 from Rs 15 for financial transactions and Rs 6 to Rs 5 for non-financial transactions. These will be applicable from August 1, 2021.
-PTC News
