These 4 ATM cash withdrawal rules are changing soon; here's everything you must know about them
New Delhi | Jagran Business Desk: The Reserve Bank of India (RBI) announced key changes in ATM (Automated Teller Machine) on Thursday related to cash withdrawal. This includes a new free ATM transaction limit, higher charges to be charged by the respective banks on the transactions beyond the free limit and the increase in inter-bank fees.
The changes have been announced on the basis of recommendations of the committee comprised of the Indian Banks' Association, under the chairmanship of the Chief Executive that had reviewed the ATM charges and fees with a focus on interbank structure for ATM transactions.
“The recommendations of the Committee have been comprehensively examined. It is also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014. A substantial time has thus elapsed since these fees were last changed,” The RBI said in its circular.
These are the four ATM cash withdrawal rule changes you must know:
1. Five free transactions from own bank: An ATM user can now have five free transactions (cash withdrawal or non-financial transactions) up to the designated withdrawal limit from its own Bank.
2. Three-five free transactions from other banks: If you are an ATM cardholder in a metro city, you can have up to three free transactions (cash withdrawal or non-financial transactions). Whereas for those living outside metros you may have up to five bank transactions.
3. Customer fee Rs 21 per extra transaction: The RBI announced in its circular that from January 1, 2022, onwards the bank can increase the customer charges up to Rs 21 per extra transaction for interbank ATM transactions. The RBI cited “general escalation in costs” as the reason behind allowing banks to charge this much customer fee.
4. Hike in financial, non-financial fee: From 1st August 2021, the RBI has allowed an increase in the 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.
Posted By: Mukul Sharma