ATM withdrawal fees are increasing as of January 1: find out how much you’ll have to pay

New Delhi: Customers will have to pay more for ATM withdrawals above a certain limit beginning January 1st, as banks will levy higher ATM withdrawal fees beginning next month.

In June, the Reserve Bank of India authorized banks to charge fees for cash and non-cash ATM transactions that exceed the free monthly permissible limit beginning next year.

“To compensate for the higher interchange fee and the general cost increase, banks are permitted to raise customer charges to Rs 21 per transaction. This increase will take effect on January 1, 2022 “The RBI stated in a circular.

New ATM withdrawal charges beginning January 1, 2022 Bank customers will be charged Rs 21 per transaction, rather than Rs 20, if they exceed their monthly free transaction limit beginning January 1, 2022.

Customers will, however, continue to be eligible for five free transactions (both financial and non-financial) per month from their own bank ATMs. They would also be able to make three free withdrawals from other bank ATMs in metro areas and five in non-metro areas.

Banks deploy ATMs to serve their own customers as well as to serve the customers of other banks as acquirers, from which they earn interchange income.

Why has the RBI allowed the fees to be raised?

The RBI stated that the charges were permitted to be raised due to the rising cost of ATM deployment and the expenses incurred by banks/white label ATM operators for ATM maintenance, as well as the need to balance stakeholder expectations and customer convenience.

It should be noted that the central bank established a committee in June 2019 chaired by the chief executive of the Indian Banks’ Association to review the entire range of Automated Teller Machine (ATM) charges and fees, with a particular focus on interchange structure for ATM transactions.

The RBI stated that the panel’s recommendations were thoroughly reviewed.

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