Now you have to pay extra charge for withdrawing cash from ATM. The Reserve Bank of India (RBI) on Thursday approved a change in rules regarding ATM transactions after nearly nine years. The RBI has allowed all banks to raise interchange prices for ATM transactions.
The RBI said, “Customers will be able to use ATMs 5 times for free, but after that there will be a charge of Rs 6 for non-financial transactions.” With this, the financial transaction i.e. the cost of withdrawal has been increased from Rs 15 to Rs 17.
According to a report, the Reserve Bank of India (RBI) has allowed an increase in the interchange cost structure for ATM transactions after almost 9 years. Banks are now allowed to incur higher costs in view of the rising cost of deploying ATMs across the country and the cost of ATM maintenance by banks.
For many years, private banks and white label ATM operators have been charging Rs. They were demanding an increase from Rs 15 to Rs 18.
Find out how much it will cost now
As per reports received on Thursday, the RBI has increased the interchange fee per transaction for financial transactions from ATMs from Rs 15 to Rs 17 and for non-financial transactions from August 1, 2021 to Rs. 5 to Rs. 6 have been done. It is being said that from January 1, 2022, banks will be allowed to charge Rs 21 as customer charge. At present, banks are allowed to charge a maximum of Rs 20 for this.
What is an ATM Interchange Charge? For example, suppose you are an SBI customer and withdraw money from a Punjab National Bank (PNB) ATM using your SBI card. In such a case, SBI pays a certain fee to the bank through the ATM machine used by its customer i.e. PNB. This is called an ATM interchange fee.
It will now be expensive for customers to withdraw money from other bank’s ATMs. However, according to the RBI, customers are eligible for free financial or non-financial from their bank’s ATMs every month. Along with this they are suitable for 3 transactions in metro cities and 5 in non-metro cities from other bank’s ATMs. According to the RBI, banks can charge a maximum of Rs 20 in the name of customer charges in addition to free transactions. It has been allowed to increase by Rs 1 from the new year.