The RBI has increased the fee for ATM cash withdrawals to Rs 21. Other charges have also been increased.
New Delhi: The Reserve Bank of India (RBI) has raised the fee for cash withdrawals from Rs 20 to Rs 21. Banks in India currently offer three to five free ATM transactions per month, including both financial and non-financial transactions.
This means that from the sixth ATM transaction onwards, Rs 21 will be charged. Banks will now charge Rs 17, rather than Rs 16, as an interchange fee, which is a fee paid by the card issuer bank to the bank whose ATM is used to withdraw cash.
Meanwhile, the central bank has raised the fee for non-financial ATM transactions from Rs 5 to Rs 6.
According to the RBI’s official announcement, the newly charged will go into effect on August 1, 2021. “To compensate for the higher interchange fee and the general cost increase, banks are permitted to raise customer charges to 21 per transaction. This increase will take effect on January 1, 2022 “In a statement, the RBI stated.
Customers are permitted to make three free transactions at other bank ATMs in metro areas. In non-metropolitan areas, the limit is set at five.
The RBI stated that banks are permitted to raise fees to compensate for the rising costs of ATM deployment. With the revision of ATM charges, banks and white label ATM operators will also aim to cover additional expenses for ATM maintenance.
