The new changes related to ATM withdrawals will be effective from August 2021 onwards.
Several new ATM rules have introduced and these might put a little more burden on the pockets of the customer. Bank customers and debit card users, who rely on ATM withdrawal, are required to calculate the number of times they are withdrawing money as they will have to pay more. Reserve Bank of India (RBI) has increased ATM withdrawal-related charges. The new changes will be effective from August 2021 onwards.
The RBI had constituted a committee in June 2019 under the chairmanship of the Chief Executive, Indian Banks’ Association, to review the entire gamut of Automated Teller Machine (ATM) charges and fees with a particular focus on interchange structure for ATM transactions.
Know the major rule changes related to ATM withdrawals:
1) With effect from August 1, 2021, banks are allowed to increase interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres, RBI circular said. ATMs are deployed by banks for serving their own customers and also provide services to other banks’ customers as acquirers where they earn interchange income.
2) RBI has also allowed the banks to hike the fee charged on cash withdrawal beyond the permitted free ATM transaction limit from Rs 20 to Rs 21 per transaction, with effect from January 1, 2022.
3) Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.
4) Customers are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling/cap on customer charges is Rs 20 per transaction.