If you are using Automated Teller Machine (ATM) card to withdraw money then this news is for you as the latest decision of the Reserve Bank of India (RBI) will affect you slightly.
The RBI has given permission to every bank to increase the fee charged on cash withdrawal beyond the permitted free ATM transaction limit.
The central bank has allowed the bank to increase the fee charged on cash withdrawal beyond the permitted free ATM transaction limit to Rs 21 from Rs 20 per transaction.
The RBI’s decision will come into force from January 1, 2022.
It is to be noted here that the customers are eligible to withdraw money from their own bank ATMs five times freely every month. Besides, they are also eligible for free withdrawals from the ATMs of other banks i.e three transactions in metro centres and five transactions in non-metro centres. Those who withdraw money beyond the free transactions, will have to pay a charge of Rs 20 per transaction.
“To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022,” the RBI said in a notification on Thursday.
The Reserve Bank of India also allowed the banks to increase the interchange fee per transaction. It has been increased from Rs 15 to Rs 17 for financial transactions. Likewise, the interchange fee for non-financial transactions in all centres also has been raised from Rs 5 to Rs 6. This shall be effective from August 1, 2021.