New Delhi: The Reserve Bank of India (RBI) on Thursday approved changes in the rules relating to ATM transactions. Now, after withdrawing money from ATMs in excess of the prescribed limit from January 1, 2022, customers will have to pay Rs 21 instead of Rs 20 for each transaction.
However, the RBI has said that customers will continue to enjoy five free transactions (including financial and financial transactions) per month from their bank ATMs. They will also be able to make ATMs of other banks in metro cities and three free transactions in three non-metro cities. Apart from this, banks have been allowed to increase the interchange fee for ATM transactions from Rs 15 for each financial transaction to Rs 17 and for non-financial transactions to Rs 5 to 6.
ATM installation costs and maintenance costs increased
The RBI said the increase in charges was in view of the need to balance the rising costs of ATM installation and ATM maintenance by banks / bank white label ATM operators as well as stakeholders and customer convenience. .
Formation of committee in 2019 to review ATM fees
In June 2019, the RBI formed a committee headed by VG Kannan, then president of the Indian Banks Association, to review the ATM charges. The committee’s recommendations were announced in July 2020. The committee recommended using the population as a metric for ATM charge calculations.
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