New Delhi: The Reserve Bank of India (RBI) has elevated the charges charged on cash withdrawal from Rs 20 to Rs 21. Currently, banks in India supply 5 free ATM transactions, together with each monetary and non-financial.
This implies that Rs 21 will probably be charged from the sixth ATM transaction onwards. Banks will now cost Rs 17, as an alternative of Rs 16, as interchane fee, a cost paid by the financial institution that points the cardboard to the financial institution the place it’s used to withdraw cash.
Meanwhile, the central financial institution has also elevated the charges for non-financial transactions at ATMs from Rs 5 to Rs 6. Also Read: Do you often use ATM card? Here are 5 good practices to observe whereas withdrawing cash from ATM
In its official announcement, RBI mentioned that the newly charged will come into impact from August 1, 2021. “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,” the RBI mentioned in a press release.
Customers are allowed to do three free transactions from other financial institution ATMs in metro centres. In non-metro centres, the restrict is capped at 5. Also learn: ‘Forget to acquire cash from ATM’; know what occurs to your cash
The RBI famous that the banks are allowed to enhance the charges to compensate for the rising prices of ATM deployment. Banks and white label ATM operators will also goal to cowl further bills in direction of ATM upkeep with the revision of ATM charges.
