The Reserve Bank of India recently announced a few adjustments to ATM rules. While these requirements are in accordance with the long-standing demands of payment providers, banks, and white-label ATM operators, they do put a little extra strain on customers’ wallets.
Here are five major rule changes concerning ATM cards that you should be aware of.
1. Beginning August 1, 2021, banks are permitted to increase interchange fees per transaction in all locations from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions, according to the circular. Banks deploy ATMs to serve their own clients as well as to serve the customers of other banks as acquirers, from which they get interchange fees.
2. Beginning next year, the RBI will allow banks to levy fees for cash and non-cash ATM transactions that exceed the free monthly allowable limit. “To compensate for the higher interchange fee and the general cost rise, banks are permitted to raise client charges to Rs 21 per transaction. This hike will take effect on January 1, 2022 “In a circular, the RBI stated.
3. Beginning January 1, 2022, bank customers will be charged Rs 21 per transaction instead of Rs 20 if they exceed their monthly free transaction limit.
4. Customers are entitled to five free transactions (including financial and non-financial transactions) from their own bank ATMs each month.
5. Customers are also entitled to three free transactions (including financial and non-financial transactions) from other bank ATMs in metro areas and five free transactions in non-metro areas. Aside from free transactions, the customer charge ceiling/cap is Rs 20 per transaction.